In a major shift, Gov. Josh Shapiro restricts data center development in Pennsylvania
The far-reaching order does not include a moratorium on data center development. However, it requires local approval 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 a rumored 2028 presidential contender, had been an early champion of data center development in the state, including a $20 billion commitment from Amazon to build at least two data centers in Bucks and Luzerne Counties.
Now he is taking a hard-line stance against the burgeoning data center industry he once courted, as proposed projects draw increasing bipartisan backlash across Pennsylvania.
» 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. However, the order requires local approval for projects to receive state permits, which in effect may block many developments from moving forward.
Shapiro used his executive powers Tuesday to push through his previously proposed Governor’s Responsible Infrastructure Development standards, which were initially pitched as voluntary incentives for data center developers to receive tax breaks, but failed to receive support from the GOP-controlled state Senate. All projects will be required to follow GRID’s environmental, economic, and transparency requirements in order to move forward.
“I have no other choice than but to take this executive action to protect the good people of Pennsylvania from these predatory developers and from these projects that would negatively impact our communities,” Shapiro said after signing the order.
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. Companies must follow GRID guidelines to access the state’s existing sales tax break for data centers.
Prohibits any state agency from signing a nondisclosure agreement related to a data center project.
Instructs the Pennsylvania 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, as well as 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.
‘On notice’
Pennsylvania has become a top target for data center projects, due to its key placement near some of the nation’s largest metropolitan areas, its energy production potential, and its vast rural areas.
But data centers have become increasingly unpopular in the year since Shapiro championed the Amazon deal as one promising that the future of artificial intelligence “is going to run right here through the Commonwealth of Pennsylvania.”
In a June poll conducted by Quinnipiac University, 76% of registered Pennsylvania voters said they would oppose a data center in their communities. Only 24% of voters said they approve how Shapiro is handling data centers in Pennsylvania, including 40% of Democrats — a drop from his 51% overall favorability in the same poll.
His past support for data centers emerged as a potential liability to his reelection campaign and his 2028 prospects.
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. The governor also outlined his opposition to controversial projects in Shapiro’s home county, Montgomery County, that he had recently denounced.
“Archbald and Montco are just two examples of dozens of communities being overrun and overwhelmed by developers who don’t give a damn about us and think they can have their way,” Shapiro said. “Today, I’m formally putting them on notice.”
Shapiro took specific issue with the more than 100 speculative projects across the state, which include some from real estate developers who are seeking building approvals without determining or disclosing the company for which they would be storing the data.
The Data Center Coalition — the leading data center group representing Amazon, Microsoft, and other top developers — said in a statement that distinguishing between real, company-led projects and proposals is important and that rules should not be “changed midstream” for “verified and responsible data center projects.”
“Companies have made plans, communities have prepared for economic opportunities, and workers are ready to build the next generation of digital infrastructure right here in Pennsylvania,” said Dan Diorio, the executive vice president for state policy and government affairs at the Data Center Coalition.
Diorio previously told The Inquirer that Shapiro’s GRID standards were “extensive” compared with the 37 other states that offer sales tax exemptions.
Shapiro’s administration appeared prepared to face legal challenges from the deep pockets of the data center industry or property developers. The order includes a severability clause, something not traditionally used in executive orders, that says if any parts of the order are “held to be invalid,” the rest of the order still stands.
Shapiro has previously said his position on data centers has evolved. But his order Tuesday is perhaps his most dramatic shift: He has 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
The Amazon projects currently underway in Pennsylvania have already passed through the first phase of permitting, and will be required like all other projects to follow the requirements moving forward, a spokesperson for Shapiro said.
An Amazon spokesperson did not respond to a request for comment Tuesday.
There are six data center projects under construction in Pennsylvania, and 10 have received at least one state-level permit approval, Shapiro’s office previously told The Inquirer.
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 a measure during the spring legislative session.
At the news conference Tuesday, Shapiro invited representatives from the Pennsylvania Association of Township Supervisors — the main group representing the local governments at the forefront of pushing for data center restrictions — in addition to advocacy groups including the Pennsylvania Utility Law Project and the National Resources Defense Council. The groups praised Shapiro’s plan.
Though Shapiro’s order was widely lauded by Democratic state lawmakers and environmental groups, it was met with criticism from some of his detractors, including his Republican challenger for governor in November, Treasurer Stacy Garrity.
Garrity’s first TV ad featured Shapiro’s support for data centers, and on Tuesday she said in a statement that Shapiro is “trying to gaslight the people of Pennsylvania into not believing what they’ve seen with their own eyes for the past 13 months.” (Garrity’s position on data centers has also changed since the June 2025 announcement, which she lauded at the time; she has since said Pennsylvania needs to put a “pause” on all data center development.)
Megan McDonough, the state director for advocacy organization Food and Water Watch, said in a statement that “Shapiro knows that he’s been acting out of accordance with what Pennsylvanians actually need,” but that the order falls short.
“Shapiro is feeling our heat because Pennsylvanians have made it impossible for him to ignore us,” she said. “The only solution to addressing AI data centers’ many woes is by placing a mandatory moratorium on all new data center development.”
