Pennsylvania Governor Josh Shapiro (D) signed an executive order on Tuesday that establishes new regulatory requirements for data center development within the commonwealth. The order introduces a review process that evaluates the environmental, energy, and community impact of proposed facilities, requiring developers to secure municipal approval and provide their own power sources.
The move follows a period of rapid growth in data center demand, driven by the expansion of artificial intelligence. Data centers are facilities containing networked computer servers and storage equipment used to process digital traffic and software. Last year, Governor Shapiro helped secure a $20 billion investment from Amazon for two data centers in Pennsylvania, but he stated that recent developer behavior prompted the need for stricter oversight.
During an appearance on "CBS Mornings" on Wednesday, Shapiro said he decided to implement the order after hearing concerns from constituents in Lackawanna County and Montgomery County. He cited specific instances where developers proposed projects in densely populated areas or near public parks without community support. Shapiro stated that while he welcomes serious proposals that protect the environment and generate their own power, he will not permit developers to ignore local interests.
The scale of the industry in Pennsylvania is significant, highlighted by Amazon's previous $20 billion commitment for just two sites. For a sense of scale, a single $10 billion facility investment represents thousands of dollars in capital expenditure per resident in the immediate surrounding area. Under the new rules, developers who cannot meet the "strictest requirements in the entire country" will be barred from starting projects, which may slow the pace of new construction while ensuring that those that proceed do not rely on public energy resources.
The knock-on effects could influence how other states manage the rapid expansion of AI infrastructure. As data centers require vast amounts of electricity and land, Shapiro’s requirement for independent power generation sets a precedent that may be adopted by other governors facing similar energy grid constraints. The next steps involve the implementation of the review process described in the executive order, which is effective immediately. Developers with pending or future proposals must now demonstrate community support and environmental compliance to proceed with construction.