Pennsylvania Gov. Josh Shapiro (D) signed an executive order on Tuesday that establishes new requirements for artificial intelligence (AI) data center development in the state. The order implements the Governor’s Responsible Infrastructure Development (GRID) requirements, which mandate that prospective developers pay all electricity costs for their facilities and obtain a significant portion of their energy from clean sources.
The executive order follows a June vote in the Pennsylvania House of Representatives to codify these GRID requirements, though the state Senate has not yet voted on the measure. Shapiro stated during a Harrisburg press conference that he signed the order because he had "no other option" given the lack of action from the state Senate. The governor also removed data centers from the state's Fast Track permitting program, which had previously allowed Amazon to receive permission for a $20 billion investment in two centers in Luzerne and Bucks counties.
Under the new order, developers must provide a notice of intent to comply with state safeguards and obtain approval from local communities before beginning construction. The order also prohibits companies from using nondisclosure agreements (NDAs) to keep project details secret from local residents. Shapiro said the move was shaped by community feedback and a desire to ensure developers respect local infrastructure and transparency standards.
The scale of the impact is underscored by the previous $20 billion investment by Amazon, a figure that represents a significant portion of industrial development in the region. Under the new rules, these firms must bear the full cost of electricity infrastructure rather than potentially sharing costs with the public utility system. While the specific per-household impact on utility bills is not detailed in the report, the requirement for developers to pay all facility-related electricity costs is intended to insulate local ratepayers from the high energy demands of AI infrastructure.
This action sets a precedent for how state governments may regulate the rapid expansion of energy-intensive AI facilities. Residents in Pennsylvania will notice a shift in the development timeline, as projects now require explicit local community approval and public notices of intent before construction can start. The executive order is effective immediately as of Tuesday, though the Pennsylvania House has already passed legislation to make these requirements permanent law, a move that awaits further action in the state Senate.