Gov. Josh Shapiro signs executive order restricting data center development in Pennsylvania
The far-reaching order does not include a moratorium on data center development. However, it requires local approvals to receive state permits, which in effect may block many from moving forward.
HARRISBURG — Gov. Josh Shapiro signed a sweeping executive order on Tuesday dramatically restricting data center development in Pennsylvania, marking a major shift from his initial embrace of the increasingly unpopular projects.
Shapiro, a first-term Democrat running for reelection and rumored 2028 presidential contender, had been an early champion of data center development in the state, including a fast-track permitting initiative and a $20 billion commitment from Amazon to build at least two data centers in Bucks and Luzerne Counties.
Now, he’s joining a growing group of bipartisan governors who are trying to slow — and, in some cases, nearly stop — data center development as opposition reaches a fever pitch.
» READ MORE: How Josh Shapiro’s early embrace of data centers is testing his high popularity in Pennsylvania
The far-reaching executive order does not include a moratorium on data center development, according to a draft obtained by The Inquirer. However, the order requires local approval for projects to receive state permits, which in effect may block many developments from moving forward.
Shapiro will use his executive powers to push through his previously proposed Governor’s Responsible Infrastructure Development standards — initially pitched as a voluntary incentive that failed to receive support from the politically split General Assembly — as requirements for any data center project to move forward.
“The absence of legislative approval has left me with no other option but to protect the people of Pennsylvania by taking executive action to put the strictest guardrails in the nation in place to stop the predatory developers and these bad proposals from infecting our commonwealth,” Shapiro said.
Shapiro’s order also:
Removes all data center developments, including those by Amazon, from the fast-track permitting program, and no data centers will be considered for the program moving forward.
Requires data center projects to sign legally binding agreements to certain transparency and environmental requirements in GRID, such as water conservation standards and early and transparent public notification of proposed projects ahead of key local approvals.
Prohibits any state agency from signing a non-disclosure agreement related to a data center project.
Instructs the Department of Environmental Protection to publish a publicly accessible map of current permitting information for all proposed data center projects.
Mandates that the projects bring their own electricity generation and pay all costs associated with increased energy usage.
Requires a community-benefit agreement that includes promises to hire and train local employees, and developer investments in schools or infrastructure.
Underscores Pennsylvania’s unique state constitutional rights to clean air, pure water, and environmental preservation — a focus of many residents who oppose data center projects.
Shapiro delivered remarks in Harrisburg before signing the order, touching on his visit to Archbald, a rural town in Northeastern Pennsylvania set for widespread data center development. He also outlined his opposition to a controversial project in his home county, Montgomery County, which he recently denounced.
Shapiro has previously said his position on data centers has evolved. But his order Tuesday is perhaps his most dramatic shift: He’s gone from consulting Amazon and the data center industry on his GRID principles earlier this year, to pulling the tech giant and others from the state’s fast-track permitting program and requiring community-benefits agreements for the projects to move forward.
» READ MORE: Pa. state lawmakers found common ground on this data center policy — but still couldn’t reach a deal
It was not immediately clear how Shapiro’s executive order will affect the Amazon projects already underway and other data center projects that have already been issued permits. Shapiro’s office previously said that while there are more than 100 speculative projects across the state, only six data center projects are under construction and only 10 have received at least one state-level permit approval.
If developers do not agree to Shapiro’s GRID requirements, their permit applications will be held in limbo by DEP until after they receive local approvals. They will also be ineligible for a popular sales-tax exemption currently available to data center projects in Pennsylvania.
Shapiro and the General Assembly have been under pressure by anti-data center activists to enact guardrails on the massive projects, with many arguing that Pennsylvania moved too quickly and sacrificed the state’s safety in favor of Big Tech. Pennsylvania lawmakers nearly unanimously supported ending the sales-tax exemption for the projects, but failed to implement it during the spring legislative session.
This is a developing story and will be updated.
