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3w ago

Shapiro Signs Order Tightening Rules for AI Data Centers in Pennsylvania

The move makes voluntary GRID standards legally binding to protect local communities by requiring developer-funded grid upgrades and local approval.

This aerial view shows an Amazon Web Services (AWS) data center adjacent to single-family homes in Stone Ridge, Virginia on August 12, 2026. Hastily built to meet skyrocketing demand for computing power required by the global artificial intelligence race, data centers are facing opposition across the United States.
FILE - Cars drive past data centers on July 16, 2023, in Ashburn, Va. (AP Photo/Ted Shaffrey, File)
A growing amount of exposed rock is seen near intake tubes at Hoover Dam, where water levels have declined dramatically to lows not seen since the Lake Mead reservoir was filled after its construction, as climate change and growing demand for its water shrink the Colorado River and create challenges, in Boulder City, Nev., April 17, 2022.

Overview

  • Gov. Josh Shapiro signed the executive order on Tuesday, August 18, removing data centers from the state fast-track permit stream and making previously voluntary GRID requirements enforceable.
  • The order bars state agencies from signing nondisclosure agreements, requires projects over 25 megawatts to commit to transparency and environmental terms, and directs annual energy and water reporting to start in July 2027.
  • Shapiro tied the action to more than 100 reportedly proposed projects that his administration calls speculative and said the new rules give local governments effective veto power over state permits.
  • The order instructs state officials to pursue utility rules so data centers pay for grid upgrades and face curtailment rules, a step meant to prevent costs from being passed to other ratepayers.
  • The decision echoes moves in New York and Texas and sharpens data centers as a midterm political issue by adding permitting uncertainty that could slow or reshape planned hyperscale projects.