Pennsylvania has introduced restrictions on new data center development to manage grid load and substation capacity constraints.
Pennsylvania Gov. Josh Shapiro signed an executive order on Aug. 18 directing the Department of Environmental Protection (DEP) to review data center permit applications only if developers have secured local approval and made a legally binding commitment to meet his Responsible Infrastructure Development (GRID) Requirements.
According to a press release from Shapiro’s office, the order is designed to block “speculative, irresponsible data center projects from moving forward, giving local communities more power over data center development, and protecting Pennsylvania residents.” The executive order establishes strict developer obligations covering energy affordability, community engagement, workforce and economic development, transparency, and environmental protection.
“Over the past year, I’ve listened to the people of Pennsylvania, and I’ve heard directly from many residents across our commonwealth who are concerned about what data center development could mean for our communities, our environment and our utility bills,” Shapiro said. “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. These are some of the biggest companies in the world—they can afford to be good neighbors, follow the rules and do this right.”
The order also removes all artificial intelligence (AI) data center projects from the Pennsylvania Permit Fast Track Program and bars future consideration of such projects within the program. Additionally, it mandates new public transparency requirements, explicitly prohibiting the use of nondisclosure agreements related to data center projects.
In a related development, New York has temporarily halted large data center construction. Meanwhile, the Pennsylvania executive order directs the DEP to integrate the GRID Requirements into its permit review process for all data center proposals. Projects must secure legally enforceable commitments to meet GRID standards through a consent order and agreement (COA). Under the revised process, the DEP will continue to review qualifying permits as they are submitted and verified as compliant with Pennsylvania law. However, departing from current practice, the agency will not issue any permit until the project has obtained all required local approvals. Where applicable, permits will incorporate the GRID Requirements.
For developers who decline to meet the GRID Requirements, the DEP will postpone permit reviews until after all local approvals are secured and every required construction permit application has been individually reviewed and deemed compliant. This updated review framework will apply to all new data center permit applications moving forward.
The executive order specifies that developers must adhere to the GRID Requirements. Shapiro says he is taking this action as the number and scale of proposed projects have grown rapidly, prompting widespread concern among Pennsylvanians regarding potential impacts on local communities, energy costs, air quality, water resources, and infrastructure. “Most of these proposals are speculative in nature, with no identified end user, but comprise plans that, if realized, would add significant burdens to the local community—including energy costs, noise pollution and more—absent sufficient efforts to mitigate those impacts,” the order states.
To enforce compliance, the DEP will develop a standardized COA template that all data centers with a peak demand exceeding 25 milliwatts must execute and submit. The order also requires the DEP to notify currently operating data centers that, beginning July 1, 2027, and annually thereafter, they must file mandatory energy and water consumption reports.
Over the past year, the DEP has identified more than 100 data center projects listed in publicly sourced databases, with 58 engaging with the agency at varying levels of formality regarding permitting. Of those, 15 have submitted at least one DEP permit application, and five have secured all necessary permits for their initial development phase.
Shapiro emphasized that the order sends a straightforward directive: developers must prove a project can be executed responsibly and secure community backing before proceeding. “As demand for artificial intelligence and data center infrastructure continues to grow, these guardrails will ensure Pennsylvania remains competitive for major investment opportunities while requiring developers to meet clear standards that protect ratepayers, local communities, workers and the environment,” the press release concluded.
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