Governor Shapiro signed an executive order establishing new regulatory rules specifically targeting data center development and permitting.

SALEM, Ohio — Pennsylvania Gov. Josh Shapiro has clarified his administration’s position on data center development by signing an executive order on Aug. 18 directing the Pennsylvania Department of Environmental Protection (DEP) to evaluate projects only if they comply with the governor’s GRID standards.

Standing for Governor’s Responsible Infrastructure Development, the GRID framework was fully released in May. It establishes guidelines designed to protect energy affordability, foster transparency and community engagement, advance workforce and economic development, and strengthen environmental protections.

“My message to data center developers is clear: 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,” Shapiro said in a statement. “These are some of the biggest companies in the world — they can afford to be good neighbors, follow the rules, and do this right.”

Proposals for artificial intelligence-driven data centers have emerged across Pennsylvania, drawing scrutiny due to their consumption of millions of gallons of water, occupation of hundreds of acres of land, and heavy reliance on electricity. These demands have sparked local and statewide concerns regarding energy affordability and resource allocation.

Pennsylvania Farm Bureau President Tommy Nagle praised the executive order for safeguarding “farmers and rural communities” from bearing the financial burden of data center expansion. However, he emphasized that further measures are necessary to protect agricultural land. “We are hopeful that the Governor and the Pennsylvania Public Utility Commission will take additional action to protect agricultural land from unnecessary transmission lines and other infrastructure needed to support data center development, including safeguards against the use of eminent domain to take farmland for projects that primarily serve private data centers,” Nagle stated.

Under the new directive, the DEP will withhold permit consideration for any non-compliant developer until all local approvals are secured. Additionally, the Pennsylvania Department of Revenue will deny tax exemptions under the Computer Data Center Equipment Exemption Program Guidelines unless a project satisfies GRID standards.

The GRID standards mandate strict transparency, prohibiting non-disclosure agreements tied to data center projects and requiring annual reporting on electricity and water consumption. The order also establishes the Governor’s Special Counsel for Energy Affordability, who will collaborate with the Pennsylvania Public Utility Commission to implement consumer protection rules, including a requirement that data centers cover all interconnection costs.

The executive order instructs the DEP to evaluate whether updated environmental regulations are needed to curb emissions and to accelerate permitting for clean energy generation and data center construction on brownfields and other industrial sites. Concurrently, Shapiro announced the removal of all artificial intelligence data center projects from the Pennsylvania Permit Fast Track Program, effective immediately.

Developers seeking GRID certification must submit a joint application to the Department of Revenue and the Office of Transformation and Opportunity (OTO), outlining how their projects align with the four core GRID standards.

Liz Partsch can be reached at epartsch@farmanddairy.com or 330-337-3419.