Shapiro sets new rules for data centers
Order strengthens local control
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From staff reports
HARRISBURG -- Gov. Josh Shapiro signed an executive order Tuesday establishing new requirements for data center development in Pennsylvania, including measures intended to preserve local control and prevent energy and infrastructure costs from being shifted to residents.
Executive Order 2026-05 directs the state Department of Environmental Protection to incorporate Shapiro's Responsible Infrastructure Development, or GRID, requirements into its permitting process. The standards address energy affordability, environmental protection, workforce development, transparency and community engagement.
Under the order, DEP will not issue permits until projects have received required local approvals. Developers seeking state support must also make legally binding commitments to comply with GRID requirements.
"These are some of the biggest companies in the world -- they can afford to be good neighbors, follow the rules, and do this right," Shapiro said.
The action comes amid rapid growth in proposed data center development. The administration said more than 100 projects have been identified in publicly available databases, with 58 having engaged with DEP about permitting.
The issue has played out locally in Granville Township, where supervisors have spent months developing zoning regulations amid a proposed hyperscale data center project and concerns about electricity and water use, traffic, noise and environmental impacts.
Granville recently adopted an ordinance allowing data centers as a conditional use in its Industrial District. A development plan submitted in July was rejected as incomplete because its traffic-impact study lacked required certification. Supervisors are scheduled to meet at 6 p.m. Wednesday at the Granville Fire Company Event Center to propose additional changes to the ordinance.
Under GRID, developers would be responsible for the costs of new electricity generation, transmission, distribution and other infrastructure needed for their projects rather than passing those costs to other customers. Developers must also meet requirements involving public outreach, local workers, community benefits and environmental protections, including water conservation.
The order also removes data centers from Pennsylvania's Permit Fast Track Program, prohibits nondisclosure agreements for data center projects and requires operators to report energy and water consumption to DEP.
Developers that do not meet GRID requirements will also be ineligible for the state's existing sales and use tax exemption for qualifying data center equipment.
The order takes effect immediately and applies to new data center permit applications.