Pennsylvania imposes new permitting rules on data centers

Pennsylvania has tightened the rules for new data center projects, with Governor Josh Shapiro signing an executive order that immediately changes how permit applications will be handled in the state.

Under the order, the Department of Environmental Protection can review permit applications only if developers have made a legally binding commitment to meet the Governor’s Responsible Infrastructure Development requirements, known as GRID, and have already received local approval.

The new requirements set standards for energy affordability, environmental protection, workforce and economic development, transparency, and community engagement. Data center developers will be required to pay the full cost of new electricity generation, transmission, distribution, and other infrastructure needed to power their projects. They must also commit to open, transparent engagement with local residents and leaders, including detailed community outreach plans, and meet strict environmental protections, including water conservation requirements.

The order further requires data center projects to secure all required local approvals before permits are issued. It also removes all AI data center proposals from the fast-track permitting process and prohibits nondisclosure agreements for data center projects.

The executive order was signed on Tuesday (19 August) and is effective immediately.

"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", said Governor Josh Shapiro. "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."

Pennsylvania’s move adds to a broader push by US states to place greater controls on the data center market. Earlier this month, Texas Governor Greg Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to carry out a comprehensive audit of all data center projects currently moving through ERCOT’s interconnection process.

The source article also said several state legislatures have passed legislation placing data centers in new rate classes so they bear the costs of new transmission and generation needed to serve them. It named Ohio, North Carolina, and Virginia as notable states that have imposed those rules.

Pennsylvania has attracted a host of data center developments in recent months, according to the source article.

Read the source