Gov. Josh Shapiro has dramatically tightened Pennsylvania’s approach to data center development, signing an executive order that gives local communities greater control over projects while imposing new environmental, energy, and transparency requirements.
The move marks a significant change for Shapiro, who previously championed data centers as an economic opportunity for Pennsylvania, including Amazon’s $20 billion commitment to build facilities in Bucks and Luzerne counties. The shift comes as proposed projects have generated growing opposition across the state.
The order stops short of imposing a moratorium but requires developers to obtain local approval before receiving state permits, potentially preventing some projects from moving forward. It also makes Shapiro’s previously proposed Governor’s Responsible Infrastructure Development, or GRID, standards mandatory for projects seeking state approval.
Among the changes, data centers — including Amazon projects — will no longer qualify for Pennsylvania’s fast-track permitting program. Developers must meet water conservation and public notification standards, while state agencies will be prohibited from signing nondisclosure agreements concerning data center projects.
Projects will also be required to provide their own electricity generation and cover costs associated with increased energy demand. Developers must enter community-benefit agreements that include commitments to hire and train local workers and invest in schools or infrastructure. The state Department of Environmental Protection will create a publicly accessible map showing permitting information for proposed projects.
The change comes amid strong public resistance. A June Quinnipiac University poll found 76% of registered Pennsylvania voters would oppose a data center in their community. Only 24% approved of Shapiro’s handling of the issue.
Pennsylvania has attracted data center developers because of its location near major population centers, energy resources and available rural land. Shapiro has increasingly expressed concern, however, about speculative projects and their effects on communities.
The Data Center Coalition, representing major developers including Amazon and Microsoft, warned against changing requirements for projects already considered legitimate and responsible. Shapiro’s administration, meanwhile, appears prepared for possible legal challenges.
Six data center projects are currently under construction in Pennsylvania, while 10 have received at least one state-level permit approval.
Source: Phila Inquirer