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Pennsylvania Gov. Josh Shapiro has issued an executive order setting new rules for developers seeking to build data centers in the state, with requirements focused on energy, environmental protection, transparency, workforce development, and local involvement.
The order requires data center developers to address energy, environmental, and other concerns before moving forward with new projects in Pennsylvania. It also gives municipalities a larger role in decisions about development in their communities.
Among the changes, the order removes all AI data center proposals from the Fast Track permitting process and bars the use of nondisclosure agreements for data center projects.
Developers will be required to cover the full cost of the infrastructure needed to power their projects, including new electricity generation, transmission, and distribution, without shifting those costs to Pennsylvania households and businesses.
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The order also says developers must engage openly with residents and local leaders through detailed outreach plans. Those plans must include notification to impacted local governments, public meetings, and consultation early enough to allow meaningful public input on major design decisions.
In addition, developers must hire and train local workers and enter into community benefit agreements aimed at local priorities, including schools, infrastructure, and long-term economic development. They also must meet what the order describes as the highest standards for environmental protection, including strict water conservation requirements.
Data center operators will also have to submit annual information to the state’s Dept. of Environmental Protection on energy and water use. That includes total energy consumption and total natural gas consumption for the previous calendar year, the estimated average amount of energy usage per hour during the data center's peak, total water consumption for the previous calendar year along with the maximum day demand, and any measures taken to protect the environment and public from polluted water or air.
The executive order created strict requirements regarding energy affordability, community engagement, workforce and economic development, transparency, and environmental protection.
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