Gov. Shapiro signs data center executive order but critics say it falls short
Reprinted from Pennsylvania Capital-Star
By Whitney Downard
Using fiery language and describing the companies “recklessly” pushing data centers as “greedy” and “predatory,” Gov. Josh Shapiro distanced himself from project developers after months of mounting pressure to take action.
“Starting today, (artificial intelligence) data center developers who want to do business in our commonwealth must respect our communities and abide by these stringent requirements,” Shapiro said. “And if they can’t agree to do that, well, they should stop considering Pennsylvania a home for their project.”
The first-term governor is up for reelection this year. Both his opponent — Republican state Treasurer Stacey Garrity — and grassroots campaigns have criticized him for not limiting data centers, which provide the computing power behind e-commerce websites, streaming service and more.
Gov. Josh Shapiro said that developers who couldn’t comply with new requirements shouldn’t bring their data center projects to Pennsylvania on Aug. 18, 2026. (Photo by Whitney Downard/Pennsylvania Capital-Star)
Shapiro’s executive order signed Tuesday would be “legally binding” under his authority as governor, he told reporters and requires developers to comply with previously proposed standards that were introduced as voluntary.
Among the conditions: providing their own power sources, with an increasing portion coming from renewable energy sources like solar, advanced nuclear or battery storage; local hiring processes with a “robust” community benefits agreement; public transparency; and compliance with clean air and pure water standards.
“I’m here to say today that we will not be bullied by these developers. We will not be bulldozed by the lawyers for these big tech companies,” he said. “We have a long history in Pennsylvania of industry running roughshod over our communities to make a buck. That stops with me.”
He repeatedly called Tuesday’s action “the strictest guardrails in the nation,” though it fell short of a moratorium, such as the one advanced last month in New York and didn’t reverse state tax incentives.
In a statement, Garrity’s campaign likened his action to “gaslighting,” saying Shapiro “was the biggest data center cheerleader in the nation” and had received campaign donations from the industry.
“Now that public opinion has turned against him and his donors, Josh Shapiro is playing CYA, and Pennsylvania voters aren’t buying it,” she continued. “Josh Shapiro lit the fuse on the chaos we are seeing in community-after-community across the commonwealth because he was more concerned with his political ambitions than fighting for Pennsylvania communities.”
HOW WE GOT HERE
The two parties have accused the other of flip-flopping on data centers after both Shapiro and Garrity welcomed the state’s largest single investment from Amazon to develop a pair of data centers in Luzerne County one year ago.
“Last summer, I announced two projects that will bring thousands of new jobs and over $20 billion of investment to Pennsylvania,” said Shapiro. “Since then, we have seen an unacceptable number of speculative projects for data center development that is swamping our commonwealth — many of them led by developers who have no regard for local communities.”
He asserted that “no AI data centers (are) up and running right now” in Pennsylvania, adding that just five projects have the necessary permits to begin operations. According to the executive order, the state Department of Environmental Protection has received 20 permit applications related to projects and just 14 sites statewide obtained a tax exemption.
As part of the executive order, the Pennsylvania Department of Environmental Protection now has its own data center permit tracker displaying in-progress proposals across the state.
Earlier this year, Shapiro pushed his Governor’s Responsible Infrastructure Development (GRID) Standards, a set of voluntary standards for developers tied to tax benefits and expedited permitting. House members advanced his proposal through the chamber on a bipartisan vote but the Republican-led Senate opted not to move forward with the plan.
Senate Majority Leader Joe Pittman (R-Indiana) pointed to Senate efforts to eliminate a sales tax exemption used by projects, which he said was amended “into something unrecognizable” in the House. He said additional work was underway for more legislation in the fall.
“We strongly believe communities need to have the ability to weigh in on what is best for their residents and are open to further discussions, including considering measures to allow for moratorium decisions to be made at the local level,” he continued. “As our world continues to embrace greater access to technological advancements, the issues of energy development and national security also go hand in hand.”
Some politicians have warned that the United States needs to pursue data center development in order to compete on the global stage.
PHOTO/Gov. Josh Shapiro, Wikimedia Commons
