Pennsylvania implements stricter rules for data center growth

Pennsylvania is implementing stricter regulatory frameworks for the growth of large-scale data centers. Governor Josh Shapiro has issued an executive order under the Governor’s Responsible Infrastructure Development (GRID) initiative. This framework links favorable environmental permitting and tax treatment to specific requirements, including power supply, grid costs, local approvals, workforce commitments, and water usage.

For data center projects with peak demand exceeding 25 MW, the state’s Department of Environmental Protection will use a consent order mechanism to bind developers to these requirements. While developers can still seek permits without signing, the state will withhold application reviews until local approvals and necessary water or wastewater authorizations are secured.

Simultaneously, concerns are rising regarding the economic impact of AI-driven data center expansion on local commerce. A report from the Pennsylvania Sustainable Business Network warns that the increased demand on the electric grid could lead to significant utility price hikes. Projections suggest residential electricity bills could rise by 10-20%, while business electricity costs could increase by up to 29% due to rising PJM Interconnection capacity costs.