Pennsylvania Governor Josh Shapiro signed an executive order requiring large AI data centers to meet new environmental, transparency, and community approval standards, removing them from the state's fast-track permitting program and ensuring they cover their grid impact.
The executive order signals a growing trend of local and state governments imposing stricter regulations on data centers due to environmental and community concerns, potentially impacting the pace of AI infrastructure development.
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. The order 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. 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. 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. New York State enacted a one-year moratorium on large data center construction, and Monterey Park, CA banned them via ballot.