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Shapiro Unveils Guardrails for AI Data Centers Requiring Developers to Fund Power

The standards remain a proposal pending legislative action, with talks continuing with utilities and PJM.

Josh Shapiro, governor of Pennsylvania, speaks during an announcement in the South Court Auditorium of the Eisenhower Executive Office Building at the White House in Washington, DC, US, on Friday, Jan. 16, 2026. The Trump administration and several states laid out a plan intended to compel technology companies to effectively fund the construction of new power plants as a way to tame surging consumer utility bills while aiding the development of data centers.
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Overview

  • Gov. Josh Shapiro’s GRID framework would require data center developers to bring or pay for new power, meet strict transparency rules, hire locally and adhere to high water and environmental standards.
  • Projects that comply would receive faster, more predictable permitting along with eligibility for applicable state tax credits.
  • Shapiro created an energy‑affordability watchdog, pressed PECO, FirstEnergy, Duquesne Light and PPL to rein in costs, and warned the PUC would intervene if utilities fail to act.
  • The Pennsylvania House Energy Committee advanced a Data Center Consumer Protection Bill as dozens of related measures progress in Pennsylvania and New Jersey.
  • More than 14 gigawatts of projects have been proposed in Pennsylvania over 18 months, drawing industry warnings about investment deterrence and community pushback over grid strain, water use and potential bill increases.