Pennsylvania Governor implements stricter standards for data centers

Pennsylvania Governor Josh Shapiro has signed an executive order establishing stricter environmental and transparency standards for new data center developments. The order requires developers to adhere to the governor’s GRID standards, which focus on clean energy and job creation, to receive expedited permit reviews and maintain eligibility for state sales tax exemptions.

Key provisions of the order include a requirement for developers to demonstrate local approvals before state permits are reviewed. Additionally, the order prohibits state agencies under the governor’s control from signing nondisclosure agreements (NDAs) related to data center projects, a move intended to increase community transparency. AI-related data center proposals have been removed from the state’s fast-track permitting process.

While the order does not constitute a moratorium on construction, advocates note that it addresses concerns regarding the massive water consumption and energy needs of artificial intelligence systems. Critics of the current development surge argue that such facilities can impact local utility rates and environmental health, though some activists suggest that executive orders alone may be insufficient to manage the rapid growth of the sector.