Pennsylvania Orders Data Center Developers to Meet GRID Rules

Pennsylvania Governor Josh Shapiro signed an executive order on August 18 requiring data center developers to secure local approval and make legally binding commitments to the state's GRID requirements before the Department of Environmental Protection reviews permit applications. The order removes AI data center proposals from Fast Track permitting and bars nondisclosure agreements for data center projects, according to the governor's office.

Pennsylvania Orders Data Center Developers to Meet GRID Rules Pennsylvania Governor Josh Shapiro signed an executive order on August 18 requiring proposed data centers to secure local approval and make legally binding commitments to the state's GRID requirements before the Department of Environmental Protection reviews permit applications. The order removes AI data center proposals from Fast Track permitting and bars nondisclosure agreements for data center projects, according to the governor's office. Pennsylvania Governor Josh Shapiro signed an executive order on August 18 that conditions state review of data center permits on local approval and a legally binding commitment to the state's Responsible Infrastructure Development, or GRID, requirements. According to the governor's office, the order directs the Pennsylvania Department of Environmental Protection to review an application only after a developer meets both conditions. It also removes AI data center proposals from the state's Fast Track permitting process and prohibits nondisclosure agreements for data center projects. Shapiro described the policy as a response to community concerns about development, environmental effects, and utility bills. "If you can't agree to our strict requirements and get the community where you want to build to say 'yes,' you're not going to have the Commonwealth's support either," he said in the administration's August 18 announcement. Permitting shifts from incentives to prerequisites The GRID standards were released in May as requirements for developers seeking Commonwealth support, including permitting coordination and access to tax incentives. The executive order makes adherence a prerequisite for DEP permit review, rather than limiting the standards to projects seeking those forms of state support. The governor's office says the standards cover energy affordability, environmental protection, workforce and economic development, transparency, and community engagement. Bloomberg reports that the order also requires projects to follow water-conservation standards, cover costs associated with higher electricity use, and supply their own generation. The Philadelphia Inquirer reported that the order is not a moratorium. However, its local-approval requirement could prevent many proposals from advancing to state permitting. The Washington Post likewise characterized the order as a sharp limitation on development, with expanded review of electricity and water use. A response to speculative proposals In prepared remarks for the signing ceremony, Shapiro said there were reports of more than 100 data center proposals under discussion in Pennsylvania. He said most were speculative and that many lacked detailed plans, adequate financing, electricity access, or an agreement with a technology company to occupy the proposed facility. The remarks also stated that Pennsylvania had no operating AI data centers and that five projects held the permits needed to begin operating. The administration had previously announced two data center projects in Salem Township, Luzerne County, and Falls Township, Bucks County, which Shapiro said would bring thousands of jobs and $20 billion in investment. The Inquirer described the new executive order as a major policy shift after Shapiro had earlier supported data center development, including projects linked to Amazon. Implications for AI infrastructure projects For infrastructure teams and developers, the order adds two material gates before a Pennsylvania project can enter DEP review: a local approval process, plus an enforceable commitment covering GRID requirements. The ban on project NDAs also changes the transparency baseline for public discussion of proposed facilities. Other states are also pushing back against the investment in data centers fueled by artificial intelligence. Pennsylvania's framework places electricity, water, and community approval inside the permitting pathway rather than treating them solely as voluntary economic-development criteria. The practical effect on project timelines and capacity additions will depend on how DEP, municipalities, utilities, and developers apply the order to individual proposals. Key Points - 1Pennsylvania now requires local approval and binding GRID commitments before DEP reviews proposed data center permit applications. - 2The order removes AI data centers from Fast Track permitting and bans NDAs, increasing procedural and public transparency requirements. - 3Other states are also pushing back against AI-fueled data center investment, while Pennsylvania puts electricity, water, and community approval into the permitting pathway. Scoring Rationale The order materially changes the permitting path for AI data center development in a large US state, with direct relevance to infrastructure siting, power procurement, and project governance. Its requirements are regional, but they reflect a broader policy response to the resource demands of AI compute. Sources Primary source and supporting public references used for this report. View 4 more sources Governor Shapiro Releases Full Governor's Responsible ...dced.pa.gov https://dced.pa.gov/newsroom/governor-shapiro-releases-full-governors-responsible-infrastructure-development-grid-standards-to-protect-pennsylvanians-and-establish-strict-guardrails-to-hold-data-center-developers-accou/ Pennsylvania will sharply limit data center development, expand review processwashingtonpost.com https://www.washingtonpost.com/nation/2026/08/18/pennsylvania-gov-josh-shapiro-set-order-new-limits-data-center-development/ In a major shift, Gov. Josh Shapiro restricts data center development in Pennsylvaniainquirer.com https://www.inquirer.com/politics/pennsylvania/josh-shapiro-data-center-order-20260818.html Pennsylvania Governor Shapiro Puts ‘Guardrails’ on Data Centersbloomberg.com https://www.bloomberg.com/news/articles/2026-08-18/pennsylvania-governor-shapiro-puts-guardrails-on-data-centers Practice interview problems based on real data 1,625 SQL & Python problems across 15 industry datasets — the exact type of data you work with. Try 250 free problems /problems