Gov. Shapiro signs executive order putting guardrails on Pennsylvania data centers
PENNSYLVANIA - Gov. Josh Shapiro signed Executive Order 2026-05 on Tuesday, Aug. 18, 2026, directing all Commonwealth agencies to require data center project proposals to comply with strict Responsible Infrastructure Development (GRID) Requirements.
The executive action targets speculative data center developers and aims to protect Pennsylvania residents from higher costs, giving local communities more control over data center projects.
Growing scrutiny on data center development in Pennsylvania
What we know:
Shapiro said more than 100 data center proposals are under discussion in Pennsylvania. He said most of these projects are speculative, lack detailed plans, have insufficient financing and no agreements with tech companies to utilize the proposed spaces.
"Most of those proposals are completely speculative, and many of them haven't even taken the formal steps to apply to the Commonwealth, and they'll never be built," said Shapiro.
The governor said only five data center projects have obtained permits needed to begin operations, and there are currently no AI data centers operating in Pennsylvania. According to Shapiro, developers have tried to move forward aggressively, sometimes bullying local officials and communities.
Shapiro highlighted that rapid growth in data center proposals has raised concerns about potential impacts on local communities, energy costs and the environment.
"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 Shapiro.
What the executive order does and local impacts
Local perspective:
Shapiro said last summer he announced two major projects, one in Salem Township in Luzerne County and another in Falls Township in Bucks County, which are expected to bring thousands of new jobs and more than $20 billion of investment. Since then, speculative proposals surged, prompting him to take action.
On Tuesday, Shapiro signed the order directing the Department of Environmental Protection to evaluate data center permit applications only if developers make a legally binding commitment to meet GRID requirements and have received local approval.
Shapiro said his administration tried to pass these requirements through legislation, and the House approved the GRID requirements on a bipartisan basis. However, he said the Senate refused to bring the measure up for a vote.
"The majority leader even said that he has no intention of taking any legislative action to regulate data center development in Pennsylvania," said Gov. Shapiro.
What we don't know:
Officials have not provided the names of the five data center projects that have received permits or specified which speculative proposals are under consideration.
The Source: Information from Governor Josh Shapiro’s Executive Order 2026-05 and remarks from his data center executive order press conference.