Pennsylvania Governor Josh Shapiro on August 18 signed an executive order imposing new environmental, transparency, and community approval requirements for companies seeking to build AI data centers in the state. The order also removes data centers from Pennsylvania’s Fast Track permit program and prohibits state agencies from signing non-disclosure agreements with data center developers.
The move comes as Amazon has previously announced a $20 billion investment in Pennsylvania for data center campuses in Bucks and Luzerne counties, though the governor’s office did not specify the impact on these projects.
Governor Shapiro’s Rationale
Shapiro stated the measures are intended to prevent utility bill increases, protect clean air and water, and ensure local community approval for data center projects. He described the requirements as the nation’s strictest safeguards for data center development. In a statement on social media platform X, Shapiro said, “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 executive order follows Shapiro’s introduction of the GRID Requirements in his most recent budget address, which aimed to manage the rapid growth of data centers but did not pass the state legislature. The Pennsylvania state Senate, controlled by a Republican majority, did not bring the measure to a vote after the state’s lower chamber approved it.
Community and Political Reactions
Shapiro criticized Republican state Senate Majority Leader Joe Pittman for refusing to act on the legislative proposal, stating, “The absence of legislative approval has left me with no other option but to protect the people of Pennsylvania by taking executive action.”
During an announcement in Harrisburg, Shapiro framed the issue as a response to speculative proposals that he said were “scaring our communities” and “bullying township officials.” He emphasized that local communities would now have an effective veto over data center projects, stating, “If the local community doesn’t approve a project, the state won’t approve it either.”
Broader Context: National Backlash Against Data Centers
The Pennsylvania order aligns with a growing trend among governors to rein in data center development amid public opposition. In July, New York Governor Kathy Hochul imposed the nation’s first statewide moratorium on hyperscale data centers, citing concerns over utility costs, natural resource depletion, and community impact. Texas Governor Greg Abbott, a Republican, also announced a moratorium on new data center approvals pending regulatory audits of their impact on the state’s electric grid.
A June Reuters/Ipsos poll found that only one-third of Americans approved of the pace of data center construction, with just 14% supporting a data center being built in their community. Opposition has been driven by concerns over high energy and water consumption, utility bill increases, and irreversible community changes.
Key Requirements of the Executive Order
Under the new rules, companies must:
- Pay the full cost of their electricity usage to avoid shifting costs to residents.
- Limit water consumption to address environmental concerns.
- Conduct local outreach campaigns to engage with affected communities.
- Secure local community approval before receiving state permits.
- Meet transparency standards, including prohibitions on non-disclosure agreements with state agencies.
The order takes effect immediately, and Shapiro’s office has not yet clarified how it will affect existing proposals, including Amazon’s planned investments. A spokesperson for Amazon did not respond to requests for comment.