Josh Shapiro Signs Executive Order Imposing Nation's Strictest Rules on AI Data Centers in Pennsylvania

Pennsylvania governor signs order imposing new rules to set up AI data centers in state

Aug 18 (Reuters) - Pennsylvania Governor Josh Shapiro on Tuesday signed an executive order that would require companies setting up AI data centers in the state to meet environmental and transparency safeguards and secure local community approval for the projects. The state has become a sought-after location for data centers due to its abundant natural gas from the Marcellus shale basin, existing power infrastructure and proximity to major population centers on the ⁠East Coast. But opposition to the rapid build-out of data centers has steadily grown across the U.S. this year. A June Reuters/Ipsos poll found that only a third of Americans approved of the pace of data center construction, while just 14% supported a data center being built in their community. The order, effective immediately, removes all data centers from the state's Fast Track ⁠permit program, and bars any office or agency under Shapiro's jurisdiction from signing non-disclosure agreements with data center developers, he said on social media platform X. "I'm using the full weight of my executive authority ⁠to block the objectionable, unwarranted projects and put the nation's strictest set of protections in place." Shapiro added that the measures are intended to prevent ⁠data center projects from driving up utility bills and to protect Pennsylvanians' rights to clean air and water. Amazon (AMZN.O), opens new tab last ⁠year announced $20 billion in planned investment in Pennsylvania, highlighting the state's appeal as a destination for data center development. Reporting by Anzar Mehraj in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Pennsylvania just made itself one of the hardest US states to build a data centre in

No fast track, no non-disclosure agreements, and no shifting power costs onto households. Governor Josh Shapiro signed an executive order on Tuesday that makes Pennsylvania one of the harder places in America to build an AI data centre. The order strips data centres from the state's permit fast-track programme, blocks environmental review until developers have secured local approval, and bars state agencies from signing non-disclosure agreements on data centre projects. It arrives in a state that has become one of the country's most active AI build-out markets and one of its most aggressive regulators. Pennsylvania sued Character.AI in May after a chatbot told a state investigator it was a licensed psychiatrist, and it is now doing to physical infrastructure what it did to consumer chatbots. The framework is branded GRID, for Governor's Responsible Infrastructure Development, and rests on four principles: energy affordability, transparency and community engagement, workforce development, and environmental protection. Six agencies are directed to implement it, including the Department of Environmental Protection, the Public Utility Commission, and the Special Counsel for Energy Affordability. The mechanism is a consent order and agreement. The DEP will not begin reviewing a permit application unless the developer signs one, binding it legally to the GRID requirements, and unless every required local approval is already in hand. The ratepayer provisions are the part with real financial teeth. Developers must "pay the full cost of new electricity generation, transmission, distribution, and other infrastructure needed to power their project without shifting costs to Pennsylvania households and businesses", which puts the state alongside the federal bill introduced in June to make Big Tech carry AI's power bills. The Special Counsel has also been told to write protocols under which data centres lose service before other customers during grid stress, and to develop procedures charging data centres rather than ratepayers for reliability backstop auction costs. Annual reporting of energy consumption, peak demand, total water use, and maximum-day water demand becomes mandatory. Shapiro was not subtle about the intent. "We will not be bullied by developers and bulldozed by the lawyers working for these big tech companies," he said at the signing, adding that the requirements are "not voluntary standards" but legally binding conditions of operating in the state. He told Reuters he is "using the full weight of my executive authority to block objectionable, unwarranted projects". Pennsylvania has identified more than 100 data centre proposals; 15 have applied for DEP permits, and five have received everything they need. The numbers behind the backlash are not small. Amazon committed $20bn to Pennsylvania data centres in June 2025, the largest private investment in state history, and the Homer City Energy Campus is a $10bn-plus development with 4.5 gigawatts of gas generation across 3,200 acres. Neither is the cost. Wholesale power prices in PJM territory rose 76% year on year in the first quarter of 2026, to $136.53 per megawatt-hour, and PJM's independent market monitor attributes $7.3bn of the last capacity auction's $16.1bn total to data centre load. Shapiro cited Archbald, a borough of 7,500 people facing six proposed data centre campuses, as the sort of case the order is meant to catch. That scale of local pressure is why financing has become its own constraint on the build-out, with power availability increasingly determining where projects can go at all. The order also fills a legislative vacuum. Four data centre bills passed the Pennsylvania House and stalled in the Senate, covering PUC rules for loads above 25 megawatts, water-use notification thresholds, annual reporting with $10,000 daily penalties, and a model township ordinance. Pennsylvania is not alone in slowing down as New York enacted a statewide hyperscale moratorium of up to a year in July, and Texas paused data centre interconnection approvals against roughly 474 gigawatts of pending requests, the same month Trump was in the state pitching data centres as bigger than oil. Governor Josh Shapiro calls his the strictest set of guardrails in the country, which is a governor's characterisation rather than a finding, and sits awkwardly next to New York's outright pause. The order takes effect immediately, and the DEP is due to publish a public permit tracking map.

Pennsylvania Cracks Down on AI Data Centers as Backlash Grows

The order calls for data centers to pay costs they impose on the electrical grid rather than passing them to other customers. Pennsylvania Governor Josh Shapiro signed an executive order Tuesday imposing new restrictions on large AI data centers, including rules aimed at making developers pay for their impact on the state's electrical grid. Executive Order 2026-05 establishes new requirements for data centers with peak electricity demand above 25 megawatts. Developers seeking a streamlined state review must agree to Pennsylvania's environmental, energy, workforce, and community requirements and obtain necessary local approvals. "I'm putting these developers on notice and letting them know that we will not let them bully Pennsylvanians, disregard our constitutional right to clean air and pure water, and drive up our utility bills," Shapiro wrote on X. "I'm using the full weight of my executive authority to block the objectionable, unwarranted projects and put the nation's strictest set of protections in place." The order also removes data centers from Pennsylvania's Permit Fast Track Program and prohibits state agencies from signing non-disclosure agreements related to data center projects. Pennsylvania will also create a public map of proposed facilities and require operating data centers to report their energy and water consumption annually beginning in July 2027. The executive order also directs the state's Special Counsel for Energy Affordability to seek utility rules making data centers cover certain grid costs and face curtailment first during some emergencies unless they secure enough power to meet their demand. In the executive order, Shapiro noted that more than 100 data centers have reportedly been proposed in Pennsylvania, though only 20 have submitted permit applications to the state's Department of Environmental Protection. "From Archbald to Montgomery County to all across Pennsylvania, to your comments, texts, calls, and letters to my office, I've heard you loud and clear," Shapiro wrote. "Pennsylvanians do not want AI data centers in their communities that would raise their utility costs and pollute their resources." Data center backlash Opposition to AI data centers has spread across the U.S. as communities push back over electricity and the environmental impacts as more sites come online. In January, a Brookings analysis warned that local resistance could slow or block AI infrastructure projects and called for binding community benefit agreements. In March, Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed a White House pledge to pay for new electricity generation and infrastructure needed for their data centers as costs rose after the start of the U.S. led war with Iran. The fight over data centers has increasingly moved to local governments. By August, at least 37 people had been arrested this year in protests tied to AI data centers across the U.S.

Shapiro on placing guardrails on AI data centers in Pennsylvania: "I don't want developers running roughshod"

Kathryn Watson is a politics reporter for CBS News Digital, based in Washington, D.C. Pennsylvania Gov. Josh Shapiro doesn't want data center developers "running roughshod" in Pennsylvania communities, he said, explaining his decision to sign an executive order on Tuesday limiting data centers in the commonwealth, after he previously worked to bring AI data centers to Pennsylvania. Appearing on "CBS Mornings" on Wednesday, Shapiro said that increasingly, he's seeing developers take advantage of Pennsylvanians, a realization he said he reached through conversations with his constituents. That wasn't the case, the Democratic governor said, when he helped secure a $20 billion investment from Amazon for two data centers in Pennsylvania last year. "You know, I listened candidly," Shapiro said on "CBS Mornings." "I showed up in communities and heard the concerns of neighbors. I stood in the left field line of Eddie Staback Park in Lackawanna County, Pennsylvania, and looked where a data center developer who was wreaking havoc on a community wanted to put their data center right where the parents would be sitting watching a ball game. I'm just about seven miles away from a proposed project in a really densely populated area here in Montgomery County, where a developer is just thumbing his nose at the community, not listening to folks. These are not the kind of projects I want in Pennsylvania." Shapiro, who is considered to be a potential 2028 presidential candidate, insisted this isn't about politics, but about the people of Pennsylvania. Voters throughout the country, according to recent CBS News/YouGov polling, are skeptical of data centers. Americans are far more likely to oppose new data centers in their area than support them, although the vast majority also admit they know only a little or nothing about them. Data centers are facilities filled with networked computer services, storage drives and other related equipment that process everything from email traffic to software. Demand for that kind of storage and processing power has skyrocketed with the rapid development of AI. "I don't want developers running roughshod across our communities," Shapiro said. "That's not what happened a year ago when I did work with Amazon to bring those two data centers here in Pennsylvania. But increasingly, developers see an opportunity to take advantage of Pennsylvanians. I won't let it." Shapiro's executive order takes into consideration the environmental, energy and community costs of new centers, establishing an intense review process for any new centers, requiring them to provide their own power, and requiring municipal approval. "We've seen too many developers who are trying to bulldoze our community with these speculative deals that are never going to come into reality, and they're wreaking havoc on our neighbors," Shapiro said. "I don't want them here in Pennsylvania. If you've got a serious proposal that enjoys the support of the local community, that protects our environment, that generates power, then we're willing to talk to you and engage with you. And that is our plan here in the commonwealth now with the strictest requirements in the entire country." On the shifting political winds in the country, "CBS Mornings" host Gayle King asked Shapiro for his thoughts on the Democratic Socialists of America, or DSA, who have had some notable primary wins this cycle. "Yeah, I think we have to see what happens in the general election," Shapiro said. "But what's also clear is there is a ton of passion in the electorate right now, and a desire to defeat Donald Trump's chaos and cruelty and corruption, and people are showing up in record numbers. Our party is going to certainly have an ideological battle. It's going to have a real debate over these ideas going forward. But the thing we've got to focus on is winning in these midterms and defeating Donald Trump and his enablers."

Shapiro signs order restricting data centers in Pennsylvania

Pennsylvania Gov. Josh Shapiro (D) on Tuesday signed an executive order that could limit AI data center development in the Keystone State. The executive order, which implements his Governor's Responsible Infrastructure Development (GRID) requirements, requires prospective developers to provide a notice of intent to comply with the safeguards -- which include requiring that firms pay for all electricity costs associated with their facilities and mandating they get a significant portion of that power from clean energy sources. In accordance the order, local communities must also approve a data center project before construction can begin. Shapiro also removed all data centers from his administration's Fast Track permitting program, under which Amazon received permission last year to invest $20 billion to construct two data centers in Luzerne and Bucks counties. The order marks a reversal from Shapiro, who praised Amazon for its investment last year. The Pennsylvania governor said Tuesday he "heard loud and clear from the people of Pennsylvania" on data centers, adding he will not allow his state to "be bullied by developers and bulldozed by the lawyers" working for big tech companies. "Starting today, AI data center developers who want to do business in our Commonwealth must respect our communities and abide by these stringent requirements," Shapiro said during a press conference in the state capital of Harrisburg. "And if they can't agree to that, they should stop considering Pennsylvania." Shapiro later said, "The feedback I've gotten from people in their communities has shaped my perspective on this. And while curtailing the speed of these projects is important, ending the secrecy is as well," noting his order will bar firms from implementing nondisclosure agreements with respect to their data center projects. "Too often, developers refuse to give even basic info with neighbors -- like which tech company will occupy the AI data center or where the power will come from. That practice ends today," added the Democrat, a potential 2028 presidential contender. The Pennsylvania state House passed a bill in June that would codify Shapiro's GRID requirements, but the state Senate has not yet brought it up for a vote. Noting that fact, and taking a shot at state Senate Majority Leader Joe Pittman (R) for his inaction on the measure, Shapiro said he had "no other option" but to sign Tuesday's executive order. "Taken together, these steps will effectively block objectionable, unwarranted, and costly projects from moving forward," the governor stated.

Josh Shapiro Says He Won't Let Big Tech's Lawyers Bully Pennsylvanians, Signs Executive Order Imposing 'N

Pennsylvania Governor Josh Shapiro (D) has tightened the rules for AI data centers, requiring developers to meet strict energy, environmental and transparency standards and secure local approval before projects can move forward. Shapiro Takes Aim at AI Data Center Developers On Tuesday, Shapiro signed an executive order implementing Governor's Responsible Infrastructure Development (GRID) requirements. GRID gives local communities greater control over proposed data centers while requiring developers to address their energy and environmental impacts. The order requires developers to make legally binding commitments to the GRID standards, including covering the electricity costs associated with their facilities and meeting clean-energy requirements. Projects must also receive local approval before the state Department of Environmental Protection reviews their permits. "I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies," Shapiro said on X. Tech Elon Musk Warns Nvidia-Backed $105 Billion Ohio Data Center for OpenAI Will Take 'Much Longer' to Come Online Than Expected Elon Musk warned Nvidia's up to $105 billion Ohio data center project for OpenAI could face significant delays. 3 min read Read this article Pennsylvania Removes Data Centers From Fast-Track Permits The governor also immediately removed data centers from Pennsylvania's Fast Track permitting program, meaning future projects will no longer qualify for expedited state permitting. Latest Private Market Opportunities Join 400,000+ Investors The order additionally bars state agencies under Shapiro's authority from entering nondisclosure agreements with data center developers, a move designed to increase transparency around proposed projects. Shapiro described the measures as the "nation's strictest" protections for AI data center development. His policy marks a shift from last year, when he praised Amazon.com, Inc.'s (NASDAQ:AMZN) $20 billion plan to build two data center campuses in Pennsylvania. Shapiro Says Communities Must Have a Voice Shapiro said he changed his approach after hearing concerns from residents about data centers' potential effects on utility bills, the environment and local communities. "While Fast Track permitting has proven to be an incredible asset ... it's not right for this kind of development," Shapiro said. The Pennsylvania House passed legislation in June to codify the GRID requirements, but the state Senate has yet to vote on the measure. Shapiro said the lack of legislative action left him with "no other option" but to act through executive authority. Trump Slams New York's AI Data Center Moratorium Last month, New York Governor Kathy Hochul (D) imposed the nation's first statewide moratorium on new hyperscale data centers, temporarily suspending environmental permits for as long as one year. At the time, Donald Trump took to Truth Social to criticize the policy as a "terrible decision," arguing that it could push investment, tax revenue and jobs toward states that are more welcoming to data center projects. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Tech Rocket Lab CEO Sees AI Data Centers Moving Into Space as Computing Demand Explodes: 'Real Opportunity' Rocket Lab sees AI creating new demand for space infrastructure as companies explore moving data centers and computing capacity into orbit. 3 min read Read this article Photo Courtesy: OogImages via Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.