Pennsylvania governor restricts AI data center development

Pennsylvania has imposed new restrictions on artificial intelligence data center development that could significantly slow the construction of large-scale facilities in the state.

Gov. Josh Shapiro signed an executive order Tuesday establishing his Governor's Responsible Infrastructure Development (GRID) requirements, which mandate that prospective data center developers provide notice of intent to comply with several safeguards before breaking ground. The order requires firms to cover all electricity costs associated with their facilities and source a substantial portion of that power from clean energy. Local communities must also approve projects before construction can begin.

The governor simultaneously removed all data centers from the state's Fast Track permitting program, which previously allowed expedited approval. Amazon received Fast Track permission last year to invest $20 billion in two data centers in Luzerne and Bucks counties.

Why it matters

The executive order represents a significant policy shift that could influence how other states approach AI infrastructure development. As data centers consume massive amounts of electricity and strain local power grids, Pennsylvania's model of requiring clean energy commitments and community consent may become a template for balancing economic development with environmental and community concerns. The restrictions arrive as tech companies race to build AI computing capacity nationwide.

A policy reversal

The order marks a notable change in position for Shapiro, who praised Amazon's investment when it was announced last year. Speaking at a press conference in Harrisburg, the Democratic governor said he "heard loud and clear from the people of Pennsylvania" on data center issues.

"Starting today, AI data center developers who want to do business in our Commonwealth must respect our communities and abide by these stringent requirements," Shapiro said. "And if they can't agree to that, they should stop considering Pennsylvania."

The governor emphasized that community feedback shaped his perspective, noting that both the speed and secrecy of data center projects needed to be addressed. The order prohibits firms from implementing nondisclosure agreements regarding their data center projects.

"Too often, developers refuse to give even basic info with neighbors — like which tech company will occupy the AI data center or where the power will come from," Shapiro said. "That practice ends today."

Legislative context

The Pennsylvania state House passed legislation in June that would codify the GRID requirements, but the state Senate has not yet voted on the measure. Shapiro cited the Senate's inaction as the reason he had "no other option" but to proceed with an executive order, taking aim at state Senate Majority Leader Joe Pittman for not bringing the bill to a vote.

"Taken together, these steps will effectively block objectionable, unwarranted, and costly projects from moving forward," the governor stated.

Shapiro, considered a potential 2028 presidential contender, framed the restrictions as protecting Pennsylvania communities from being "bullied by developers and bulldozed by the lawyers" working for major technology companies.

These details were first reported by The Hill.