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Governor Josh Shapiro of Pennsylvania signed an executive order on Tuesday (August 18) to enforce the Governor's Responsible Infrastructure Development Standards (GRID) for data centers. The order, described as the "strictest guardrails" in the nation, mandates that developers supply their own power, with a significant portion from clean energy sources, and cover electricity costs themselves.
The GRID standards, initially voluntary, now legally bind AI data center developers in Pennsylvania. According to Shapiro, the order aims to prevent speculative projects, protect residents from higher utility costs, and ensure environmental and community standards are met. Developers must submit detailed plans to the Department of Environmental Protection (DEP) and sign a consent order incorporating these requirements, with penalties for non-compliance.
Shapiro's action follows stalled legislative efforts to regulate data center development. The state House passed a bill to codify the GRID standards, but the Senate has not acted. Shapiro noted that over 100 data center proposals are under discussion, yet only five have the necessary permits.
The order also prohibits nondisclosure agreements and removes data centers from the state's Fast Track permitting program. Developers must engage with local communities and disclose project details. If they fail to comply, they will lose eligibility for certain tax exemptions.
Environmental groups, like Clean Power PA, praised the order for its focus on accountability and clean energy. However, critics, including State Senate Republicans, argue it contradicts Shapiro's previous support for data center investments. Shapiro emphasized that the order is a step towards responsible development and protecting Pennsylvanians from the negative impacts of unregulated data center growth.