Overview
- Pennsylvania Governor Josh Shapiro has enacted an executive order that introduces new regulations for large data centers.
- These facilities will be excluded from the state’s expedited permitting process and will have to meet new transparency and local approval standards.
- The order mandates that data centers bear the costs they impose on the electrical grid instead of shifting these expenses onto consumers.
In a significant move, Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday that places new restrictions on large AI data centers, specifically targeting the costs these facilities impose on the state's electrical grid.
Executive Order 2026-05 establishes requirements for data centers with peak electricity needs exceeding 25 megawatts. Developers aiming for a streamlined review process must comply with Pennsylvania's environmental, energy, workforce, and community standards and obtain necessary local approvals.
Myriad: When will OpenAI release GPT-6? Click to make your prediction.Shapiro stated on X, "I’m putting these developers on notice and letting them know that we will not let them bully Pennsylvanians, disregard our constitutional right to clean air and pure water, and drive up our utility bills. I’m using the full weight of my executive authority to block the objectionable, unwarranted projects and put the nation’s strictest set of protections in place."
The new order also removes data centers from Pennsylvania's Permit Fast Track Program and prohibits state agencies from entering into non-disclosure agreements concerning data center projects.
Additionally, the state will develop a public map of proposed facilities and require existing data centers to report their energy and water usage annually, starting in July 2027.
The executive order instructs the state’s Special Counsel for Energy Affordability to pursue regulations ensuring that data centers cover specific grid-related costs and be subject to power curtailment during emergencies unless they can secure sufficient energy to meet their demands.
Shapiro noted that over 100 data centers have been proposed in Pennsylvania, although only 20 have submitted permit applications to the state's Department of Environmental Protection.
"From Archbald to Montgomery County to all across Pennsylvania, to your comments, texts, calls, and letters to my office, I’ve heard you loud and clear," Shapiro remarked. "Pennsylvanians do not want AI data centers in their communities that would raise their utility costs and pollute their resources."
Growing Opposition to Data Centers
Resistance to AI data centers is escalating across the United States as communities express concerns over electricity usage and environmental impacts associated with the proliferation of these facilities.
A January analysis from Brookings warned that local opposition could hinder or completely obstruct AI infrastructure developments and advocated for binding community benefit agreements.
In March, major tech companies such as Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI committed to a White House pledge to finance new electricity generation and infrastructure necessary for their data centers, a response to rising costs following the onset of the U.S.-led conflict with Iran.
The controversy surrounding data centers is increasingly shifting to local governance. By August, at least 37 individuals had been arrested this year in protests against AI data centers across the nation.