Data centers will need local approval before Pennsylvania grants them state permits, Democratic Gov. Josh Shapiro announced Tuesday.
The potential White House contender signed an executive order that ties data center permits to a regulatory framework he previewed earlier this year — as well as some new, tougher provisions, including a prohibition on nondisclosure agreements and no eligibility for fast-track permits.
Shapiro stopped short of a statewide data center moratorium, which has been implemented in neighboring New York and has been called for by his Republican gubernatorial opponent, state Treasurer Stacy Garrity. But his order will effectively halt any new development that faces opposition from local officials.
The new order illustrated Shapiro’s evolution from data center cheerleader into a vocal skeptic.
“I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies,” Shapiro wrote on social media.
Before state agencies begin permit reviews, Shapiro’s directive requires data centers with a peak load of at least 25 megawatts to sign a consent order outlining key details about their power demand, development plans and investment commitments.
The order also calls for utilities to cut power to data centers first in case of a grid emergency and for data centers to shoulder all the costs of their electricity service.
The Data Center Coalition, the industry’s main trade group, released a statement saying it shares Shapiro’s goals to ensure the state benefits economically from data centers while protecting residents.
But “in distinguishing speculative proposals from real projects, it’s important that rules are not changed midstream impacting ongoing investment in verified and responsible data center projects. Companies have made plans, communities have prepared for economic opportunities, and workers are ready to build the next generation of digital infrastructure,” said Dan Diorio, executive vice president of state policy and government affairs at the coalition.
Pennsylvania is in one of the fastest-growing data center regions, adding 2.4 gigawatts of new capacity between March 2024 and March 2025, according to research firm BloombergNEF.
Last summer, President Donald Trump detailed more than $90 billion in investments for the state’s artificial intelligence build-out. Amazon alone has said it plans to spend at least $20 billion for data center hubs in Pennsylvania.
But like other states, some projects have faced backlash over concerns about electricity prices, as well as land and water use.
Katie Blume of Clean Power PA praised Shapiro’s order, saying it would help “hold A.I. data centers accountable, protect Pennsylvania families from the costs and other harms of unregulated data center growth, and steer data center developers to use more cheap, clean energy to power their operations.”
