Key facts
- Pennsylvania Governor Josh Shapiro signed an executive order for AI data centers.
- New rules require environmental and transparency safeguards for AI data centers.
- Local community approval is mandated for AI data center projects.
- Data centers are removed from Pennsylvania's Fast Track permit program.
- State agencies cannot sign non-disclosure agreements with data center developers.
Pennsylvania Governor Josh Shapiro signed an executive order requiring AI data centers to meet environmental, transparency, and community approval standards. 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.
Globally, governments, regulators, and cities are increasingly moving to restrict or ban new data center construction due to mounting concerns over electricity costs, strained water supplies, land scarcity, and the burden on local communities from the infrastructure powering the AI boom. New York State Governor Kathy Hochul imposed a one-year construction moratorium on data centers using 50 megawatts or more of power, making it the first U.S. state to enact a full moratorium. During this freeze, the state's Department of Environmental Conservation will not issue new discretionary permits while officials develop standards to assess the environmental impact of data centers.
In Maine, Governor Janet Mills vetoed bipartisan legislation that would have enacted an 18-month moratorium on new data centers using more than 20 MW of power, citing an objection to the bill's failure to carve out an exception for a specific project. Monterey Park, California, residents voted to permanently ban data centers, becoming the first U.S. city to do so at the ballot box. Amsterdam imposed a one-year moratorium in 2019 and has since barred new data centers or expansions until at least 2030. Ireland's grid operator effectively blocked new data center connections around Dublin from 2021 due to grid strain, though the freeze ended in December 2025 with new requirements for on-site power generation. Australia plans to establish an "Office of AI" to manage standards for data centers, including rules for location, power, and water use, with legislation expected early next year. Denmark has introduced a draft bill to give new data centers the lowest priority for power grid connections amid capacity shortages, prioritizing households, healthcare, industry, transport, and renewable energy projects instead.
Amazon announced a $20 billion investment in Pennsylvania last year, highlighting the state's attractiveness for data center development. Governor Shapiro stated that the measures are designed to prevent data center projects from inflating utility costs and to safeguard residents' rights to clean air and water.