Pennsylvania Gov. Josh Shapiro has ordered new restrictions on data center projects in the state. Under the new order, companies will be required to obtain local approval for such projects, while data center developments will also be removed from Pennsylvania’s fast-track permitting program. Announcing the executive order this week, Shapiro said he had “heard loud and clear from the good people of Pennsylvania” and would not allow developers or technology companies to push projects through communities without local consent.“I’ve heard loud and clear from the good people of Pennsylvania as I’ve traveled our commonwealth, and I’m here to say today that we will not be bullied by these developers,” Shapiro said. “We will not be bulldozed by the lawyers working for these big tech companies. That will not happen in the commonwealth. We have a long history in Pennsylvania of industry running roughshod over our communities to make a buck — that stops with me.”
Pennsylvania data center projects face new restrictions
Under the executive order, data center projects must first receive approval from local officials. Developers will also have to sign a legally binding order committing to requirements Shapiro outlined in February, including paying for their own power, hiring locally, maintaining transparency with local governments and meeting water-conservation standards.Shapiro also said data center projects would no longer qualify for Pennsylvania’s fast-track permitting program. The order further bars nondisclosure agreements for data center projects in the state, increasing the amount of information that developers will have to make available during the approval process.The governor said the changes were prompted by what he described as an increase in speculative proposals. After the state announced two major Amazon-backed data center projects last year, Shapiro said Pennsylvania had received a large number of additional proposals, including projects he said were unlikely to be built.
Josh Shapiro changes position on data center development
Shapiro’s latest position represents a change from his earlier approach to data center development. Earlier this year, while introducing guidelines for the industry, he argued that Pennsylvania should play a role in the competition for artificial intelligence development and said data centers were an important part of the AI economy.He also stressed at the time that the state needed to be selective about which projects it pursued. Since then, opposition to data center developments has grown in Pennsylvania, with residents and local officials raising concerns about electricity costs, water use, environmental effects and changes to the character of communities.Josh Shapiro said conversations with residents had influenced his position.“Part of the challenge here is how quickly the industry has moved,” Dan Diorio, executive vice president of state policy and government affairs for the Data Center Coalition, said in a recent interview.“And so the opposition, I think, has moved just as quickly,” he added. “Now it’s coming upon us and certainly others to bring the facts and the data to bear but also be out there and demonstrate how this industry invests in the communities for the long term.”
Data center proposals draw criticism from Pennsylvania governor
During his remarks, Shapiro specifically criticised data center proposals that he said had faced opposition from residents and local officials. He pointed to a project in Montgomery County, where he lives, and accused a developer of attempting to push the proposal forward despite local resistance.“I’m a hell no on that project,” he said, adding, “I’m a hell no on many other projects.”Shapiro also said Pennsylvania’s divided Legislature had not moved forward with new data center regulations, leaving him to use executive authority to establish requirements for future projects.He described some developers as “speculators” and accused them of putting pressure on township officials and residents.“They’re threatening to fundamentally change the character of our communities,” he said, adding that the lack of legislative progress on passing new regulations for data center development — Pennsylvania’s Legislature is under split control — left him no choice but to move on the executive order.
Pennsylvania data center rules put local officials in charge
Following his announcement, Shapiro was asked whether he regretted Pennsylvania’s earlier approach to data center development. He said only a small number of projects had received permits, while many more proposals had generated opposition despite having little prospect of being constructed.“Again, there are only about five projects that have even received permits to go forward,” he said. “The problem is there’s 100 projects or so that are wreaking havoc on our communities that are never going to be built. What we’re doing today is taking concrete action to listen to the voices of the people, to put local leaders back in charge of their communities and to make very, very clear what the rules of the road are to be able to do business here in Pennsylvania.”The new requirements mean future data center developers in Pennsylvania will have to secure local approval, meet the governor’s conditions on power, employment and water use, and operate outside the state’s fast-track permitting process. The changes come as Shapiro faces re-election this fall and as data center development becomes a growing issue in state and local elections across the US.