Pennsylvania Gov. Josh Shapiro has imposed new restrictions on data center development, calling them some of the strictest in the country. His executive order requires projects to secure local community approval before receiving state permits and meet new standards covering energy costs, environmental protection, transparency and economic development.
The rules also remove data centers from Pennsylvania’s Fast Track permitting program and prohibit state agencies from using nondisclosure agreements with developers, according to Bloomberg. Data centers will be expected to cover costs associated with their electricity demand so that higher grid costs are not shifted onto households and other businesses.
The move represents a significant shift for Shapiro, who previously promoted major data center investments in Pennsylvania. The tougher approach comes amid growing concerns over electricity demand, utility bills, water use and the impact of large AI facilities on local communities.
