He said this action is necessary because the Pennsylvania Senate failed to act on legislation passed by the House to put those standards in place.
"The absence of legislative approval has left me with no other option but to protect the people of Pennsylvania by taking executive action to put the strictest guardrails in the nation in place to stop the predatory developers and bad proposals.
"Because I’ve heard loud and clear from the people of Pennsylvania as I’ve traveled our Commonwealth, and I’m here to say that we will not be bullied by developers and bulldozed by the lawyers working for these big tech companies.
"We have a long history in Pennsylvania of industry running roughshod over our communities to make a buck – that stops with me."
He said these requirements "will hold greedy developers accountable, stop bad projects, and put more power back in the hands of local communities."
"Starting today, A.I. data center developers who want to do business in our Commonwealth must respect our communities and abide by these stringent requirements."
The main elements of the Order include--
-- Notice Of Intent: Developers will be required to provide a notice of intent to comply with GRID.
-- Present Detailed Plans: Required to present their detailed plans to DEP, who will scrutinize them to ensure they’re sufficient.
-- Sign Consent Order: Developers must sign a legally binding consent order locking them into the GRID Requirements and setting penalties if they fail to comply. [Model Consent Order]
-- Local Approval First: Developers must also earn legal approval of their projects at the local level before DEP will review their permits, as well as approvals for water withdrawals or wastewater discharge..
Among other requirements, the Governor’s Responsible Infrastructure Development (GRID) and the Executive Order require--
-- Bring Your Own Power: Developers must bring their own power and pay for all the costs associated with that electricity. They will not be permitted to saddle homeowners and businesses with added costs because of their development.
-- Clean Energy Sources: They must get an increasingly significant portion of that power from clean energy sources like solar, advanced nuclear, and battery storage.
-- First Off The Grid In An Emergency: In the event of a grid energy emergency, data centers will be the ones who get cut off first.
-- Promote Transparency and Community Engagement: Provide a community outreach plan that promotes public engagement and enables meaningful public input.
-- Supporting Workforce and Economic Development: Provide a community benefit plan detailing anticipated contributions to the state and local community beyond existing legal obligations.
"If a developer refuses to comply with those requirements, they will have no pathway of getting the necessary approvals needed to build a data center in Pennsylvania," said Gov. Shapiro.
"And they will be disqualified from receiving the existing exemption on sales tax on data center equipment that was put in place two years before I was elected your governor."
"These are the wealthiest companies in the world – they shouldn’t get a tax break for gouging our communities."
State Agency Transparency
The Executive Order also--
-- Prohibits the signing of non-disclosure agreements by any agencies under the Governor’s jurisdiction
-- DEP will create a publicly accessible map with current permitting information and tracking about all proposed data center projects. [Click Here For DEP’s Data Center Permit Tracker]
-- DEP is directed to recommend new regulations to better protect the environment from data center impacts and ways to sufficiently consider the cumulative impact of multiple backup generators will have on the environment.
-- Removing Data Center Projects From Fast Track Permitting: Required permits are also excluded from DEP’s PAyback and Permit Decision Guaranteed Program.
Energy Affordability
The Governor also directed "my new Special Counsel on Energy Affordability to engage with the Pennsylvania Utility Commission and help establish rules and procedures that ensure Pennsylvanians are protected from the demand data centers put on the energy grid."
"We’re going to ensure that any infrastructure costs caused by data centers are paid by the AI data centers – not Pennsylvania homeowners or business owners – even if a data center ultimately closes and can’t pay.
"No one’s utility bill should go up because these wealthy companies don’t pay their fair share. They should pay for every penny of electricity they need.
Conclusion
"With this Executive Order, I’m putting these developers on notice and letting them know that we will not let them bully Pennsylvanians, disregard our constitutional right to clean air and pure water, or drive up our utility bills.
“We’ve had enough here in Pennsylvania – and I’m not going to let it happen on my watch.
“If these companies want to do business here, they need to comply with the strictest guardrails in the nation on data center development, starting today."
Click Here for a copy of the full GRID principles.
Click Here for a copy of the Executive Order.
Click Here for Gov. Shapiro’s press release
Click Here for a copy of the Governor’s remarks.
Click Here for a video of the event.
Additional Remarks
“DEP’s mission is to protect Pennsylvania’s air, land, and water resources, and we take that responsibility seriously,” said DEP Secretary Jessica Shirley. “Under Governor Shapiro’s Executive Order, data center developers must meet strong, enforceable environmental standards and demonstrate that their projects can move forward responsibly. We will continue to rigorously review these projects under Pennsylvania law and ensure that protecting our environment and communities remains at the center of that process.”
“The action Governor Shapiro is taking today through this Executive Order shows that he is listening to Pennsylvanians across the Commonwealth who have voiced their concerns about the impacts of data centers on their communities, the environment, and utility costs,” said Secretary of Revenue Pat Browne. “The Sales and Use Tax exemption on equipment purchases is a valuable tax benefit justifying the Governor’s position that data center projects established in Pennsylvania must follow strict standards which protect our residents and their communities in order to qualify for it.”
“When we created Hampden’s ordinance, we tried to put real, enforceable protections in place for things like energy costs, the environment, transparency, jobs and community involvement. What Governor Shapiro is doing takes many of those same concerns and addresses them at the state level. That gives communities like Hampden another layer of protection while still allowing us to make decisions locally,” said Commissioner John Smith of Hampden Township. “That’s really what local control is about and I want to thank Governor Shapiro for giving communities like Hampden a seat at the table.”
“There are a litany of issues concerning the public about the rapid proliferation of data centers nationwide. The GRID EO starts to address some of the biggest, as it relates to affordability, clean energy, and transparency,” said Dawone Robinson, Managing Director, Climate & Energy, Natural Resources Defense Council. “There is more to do, but this is a strong start for Pennsylvania.”
“Today’s Executive Order is the latest in a series of bold actions Governor Shapiro has taken to ensure Pennsylvanians’ electric bills are affordable and fair,” said Special Counsel for Energy Affordability Mark Szybist. “Without new rules and procedures from the Public Utility Commission, data centers could make the electric system less reliable and impose unjust and excessive costs on the Commonwealth’s households and businesses. The Executive Order directs me to engage at the Commission and advocate for specific critical reforms that Pennsylvania electric customers need and deserve. I look forward to helping to drive these changes on the Governor’s behalf.”
“Pennsylvania is at a pivotal moment for our energy system, and the decisions we make today will shape our grid and what families and businesses pay for electricity for decades to come,” said PUC Chairman Steve DeFrank. “Governor Shapiro’s Executive Order builds on the important work already underway and reinforces a principle that must guide us moving forward: growth should pay for growth, while we protect the reliability and affordability that Pennsylvanians depend on every day.”
“Today's announcement is important because it reinforces a fundamental principle: land-use decisions are best made at the local level by the officials who know their communities, understand local conditions, such as geography and public safety capabilities, and are accountable to the residents they serve,” said Dave Sanko, Executive Director, PA State Association of Township Supervisors. "Governor, on behalf of Pennsylvania's townships and all local governments across the Commonwealth, thank you for your leadership and advocacy in prioritizing local decision-making on these important issues."
“Our system is broken. Not only is energy unaffordable, it is increasingly scarce. We have multi-billion-dollar price increases and a less reliable grid,” said Patrick Cicero, Counsel, Pennsylvania Utility Law Project. “This is exactly why the action taken today matters. It seeks to ensure that we do not have a system where the wealthiest companies in the world get economic windfalls while a grandmother in Pennsylvania gets stuck with an electric bill she cannot afford.”
Click Here for DEP Secretary Jessica Shirley’s remarks
Click Here for PUC Chairman Stephen DeFrank’s remarks
Click Here for remarks by David Sanko, PA Assn. Of Township Supervisors
Click Here for remarks by John Matthew Smith, Hampden Twp., Cumberland County
Click Here for remarks by Dawone Robinson, Natural Resources Defense Council
Click Here for remarks by Patrick Cicero, PA Public Utility Law Project.
Reactions
Carolyn Heckman, Associate Director of Pennsylvania Policy for Evangelical Environmental Action released the following statement--
“As a historic energy leader, Pennsylvania has the opportunity to be a national leader in development while protecting the health and lives of our children.
“As developers propose to build data centers next to our homes, schools, and playgrounds, they must lead with responsible development that doesn’t bring polluted air, water shortages, and higher power bills to our doorsteps.
“Governor Shapiro’s executive order is a positive step toward ensuring this happens.
“However, we can not stop here.
“We encourage the administration and legislature to work together on lasting bipartisan legislative solutions, like House Bill 1834, for responsible data center development to protect the health and pocketbooks of Pennsylvania families.”
Alex Bomstein, Executive Director of Clean Air Council, issued the following statement--
“Pennsylvania needs a statewide moratorium on AI data centers to give communities the time needed to protect themselves from this rush of polluting proposals. The Pennsylvania public has been clear on this.
“Today’s executive order is not a moratorium, but it is a welcome step in the right direction.
“Requiring local voices with a greater stake in the outcome to weigh in before the Pennsylvania Department of Environmental Protection reviews the permit applications is a sensible change that will conserve resources and weed out some of the worst proposals.
“And while the GRID principles fall short of the protections that Pennsylvanians deserve, they are better than today’s wild west landscape.
“Energy usage and air pollution are still major concerns, and it’s disappointing that stronger protections have not been put in place.
“The biggest danger from AI data centers is the fossil fuels burned to power them. GRID’s emission reduction efforts are weak. The technology and industrial infrastructure exists today to power data centers with renewables and batteries alone.”
Center for Coalfield Justice Community Organizer Sarah Sweeney issued this statement on Gov. Shapiro's action--
While this is a step in the right direction, the order still stops short of the enforceable protections communities like ours have been asking for.
Keeping the unpopular data center sales tax exemption in place as a negotiating tool allows public money to continue supporting corporate polluters.
It also encourages developers to offer “robust community benefits agreements” without defining what they must include or requiring them to be signed.
“Senate Republicans’ refusal to take action on meaningful measures that have passed the House, including ending data center tax breaks, has left Pennsylvanians without the binding protections they deserve.
“The new regulations signed by the Governor show this administration understands what communities are asking for, yet it still gift-wraps them with tax breaks and favorable permitting for the businesses they claim to be keeping in check.
“We need the Governor to show true leadership by requiring strict, enforceable protections from any developer, Big Tech firm, or fossil fuel provider looking to profit off our communities.”
This order comes after community members across Pennsylvania demanded transparency and protections over the past year.
It’s clear our voices can no longer be ignored and, now more than ever, we have the power to demand a state where everyone has clean air and water, protection from greedy Big Tech and fossil fuel developers, and a fair say in our futures.
Harry Campbell, Pennsylvania Director of Science Policy and Advocacy for the Chesapeake Bay Foundation, issued the following statement
“Pennsylvania continues to move in the right direction in fighting the mounting challenges posed by data center projects. Now that these facilities are required to report their electricity and water usage, we can better understand potential threats.”
“The executive order signed by Governor Shapiro establishes stronger safeguards, greater transparency, and added accountability to the data center industry. We look forward to continuing to work with state lawmakers to ensure that Pennsylvanians can enjoy thriving communities, clean air, productive farms and forests, and healthy rivers and streams for generations to come.”
Michael Zimmerman, Director and Senior Attorney, Clean Affordable Power at Environmental Defense Fund, issued this statement--
“Pennsylvania can capture the economic opportunities of data center growth without forcing families to shoulder higher electricity costs or communities to bear more pollution.
“Governor Shapiro’s executive order is an important step toward ensuring data centers pay their fair share, meet strong clean energy standards and give communities a meaningful voice in decisions that affect them. Now lawmakers need to pass legislation to ensure these protections last.”
Environmental Defense Fund looks forward to working with the Shapiro administration and lawmakers across the Commonwealth to advance legislation that protects Pennsylvanians from data center-related energy costs and pollution while providing clear, enforceable standards for future development.
Tonyehn Verkitus, Executive Director of Physicians for Social Responsibility Pennsylvania, issued the following statement--
“While, some of the points in Governor Shapiro’s executive order are a step in the right direction, the majority misses what communities across the commonwealth are calling for – sensible solutions to protect their communities from the onslaught of data centers and a moratorium to pause all development until data, policies, and overall economics can catch up.
“We believe that in order to best protect Pennsylvanians, a moratorium should be put into place now. Let’s join New York in enacting one and taking residents’ concerns seriously.
“Furthermore, to lay the groundwork, it is important to say that this EO is not a statute and does not have the full effect of law.
“Many questions are left unanswered and many issues left unsolved. Here is a list of the things communities have been asking for, that this executive order does NOT do.
“This executive order:
Does not address gaps in local zoning concerns;
Does not provide local protections on sound, vibration, or light;
Does not clearly address brownfields, superfund sites, decommissioning or cumulative impacts;
Does not require demonstration of net benefits to communities;
Does not eliminate tax breaks to developers;
Does not prohibit “under-the-grid” power such as small nuclear reactors or generators;
Does not prohibit or regulate “temporary” generators;
Does not guarantee that all power generation and related costs be borne by developers;
Does not protect communities from the air and water impacts from gas-fired power plants, even while encouraging more energy buildout;
Does not include specific public participation requirements;
Does not require community benefit agreements.
Does not prohibit Data Centers from becoming a public utility;
“For these reasons, PSR PA believes that Governor Shapiro’s executive order is an incomplete response to the legitimate concerns being raised by communities across Pennsylvania.
“While we recognize the steps taken to address some of the impacts of hyperscale data centers, these measures do not go far enough to protect public health, local communities, ratepayers, and Pennsylvania’s environment.
“We feel that even though this is a midterm election year, more can be done to swiftly address this issue.
“We urge the Governor and General Assembly to listen to the residents who will bear the long-term consequences of these developments.
“We urge them to, first and foremost, enact a three-year statewide moratorium on hyperscale data center development while the Commonwealth conducts a comprehensive assessment of the economic, environmental, public health, energy, water, and infrastructure impacts of this industry and develops enforceable statewide and local protections.
“Pennsylvania should not rush to accommodate an industry whose long-term impacts are still not fully understood.”
Molly Parzen, Executive Director of Conservation Voters of Pennsylvania, stood with Governor\ Shapiro, environmental, and local elected officials as he announced an Executive Order requiring data centers seeking state permits to commit to new environmental safeguards. She released the following statement--
“We applaud Governor Shapiro for listening to the concerns of the environmental community, local elected officials and community advocates and establishing important protections for working families and our environment in the face of an unchecked data center explosion.
“Our Commonwealth’s affordability crisis is being exacerbated by the rapid surge in data center development, which also threatens our clean air, our pure water and our open space. This Executive Order is a meaningful step forward that will help expand clean energy generation and put safeguards in place to protect local communities.
“Data center developers and Big Tech titans cannot be allowed to rake in record profits at the expense of our energy bills, our clean air or our water. We appreciate that Governor Shapiro listened to the calls of so many advocates from both the environment and labor movements and brought us to the table to develop a response.
“However, this Executive Order is only a first step. Compared to neighboring states, Pennsylvania is lagging behind.
“While House Democrats have stepped up by passing aggressive, commonsense consumer protections, like House Bill 1834, state Senate Republicans have blocked nearly all efforts to regulate data centers.
“For Pennsylvania to truly protect communities and the environment, Senate Republicans must stop stalling and come to the table with Governor Shapiro and House Democrats to pass comprehensive legislation that expands clean energy, protects public health and prevents Big Tech companies from making billions on the backs of Pennsylvania families.”
Clean Power PA Chair Katie Blume made the following statement after Governor Shapiro issued this statement--
"Clean Power PA is pleased that Governor Shapiro issued a strong executive order to hold A.I. data centers accountable, protect Pennsylvania families from the costs and other harms of unregulated data center growth, and steer data center developers to use more cheap, clean energy to power their operations.
“This executive order strengthens the GRID protections originally proposed by the governor earlier this year, maximizing his authority to regulate data centers under current law. The governor deserves credit for taking action on this critical issue, particularly in the face of inaction from the state Senate leadership, which has thus far stalled all legislative solutions.
“It’s now time for the state Senate to return to Harrisburg to build on the governor’s order by enacting House Bill 1834,, legislation that has already passed the state House that imposes strict, binding safeguards on data centers, as well as other legislation to put common-sense regulations on data centers.
“HB 1834 and related legislation, combined with the governor’s executive order, are needed so large data center developers don’t stick families and small businesses with higher bills, communities are protected from the harmful environmental and health impacts of data center development, and cheap, clean energy will have a bigger role in growing our workforce and meeting the growing electric power demand across the state and region.”
Resource Links:
-- A.I. Data Center Legislative Scorecard: Pennsylvania Failed To Finalize Meaningful Legislation On Energy Affordability, To Increase Electric Generation And Give Communities The Tools They Need To Cope With A.I. Proposals [PaEN]
-- Gov. Shapiro Releases Full Governor’s Responsible Infrastructure Development Standards (GRID) For A.I. Data Centers; New Local Government Data Center Planning Toolkit [PaEN]
-- Governor’s Office Expected To Announce Further Steps To Regulate A.I. Data Centers ‘Shortly;’ 100 Data Center Proposals Being Discussed in PA, 55 Have Some Interaction With DEP [PaEN]
NewsClips:
-- PennLive- Charles Thompson: Shapiro, Feeling Heat Of Election Year Controversy, Toughens PA’s Data Center Rules
-- PennLive: Some Embrace Shapiro’s New Data Center Rules, Others Hate’em
-- Gov. Shapiro: What People Are Saying About Data Center Executive Order
-- The Center Square: Republican Rep. Doyle Heffley Says Data Center Speculation Targeted By Shapiro Is A ‘Huge Problem’
-- Concerned Citizens Of Montour County Comments On Gov. Shapiro’s Executive Order [Facebook]
-- TribLive/PennLive: Gov. Shapiro, Feeling Heat Of Election Year Controversy, Toughens PA’s Data Center Rules
-- Post-Gazette/PennLive: Gov. Shapiro, Feeling Heat Of Election Year Controversy, Toughens PA’s Data Center Rules
-- Scranton Times/PennLive: Gov. Shapiro, Feeling Heat Of Election Year Controversy, Toughens PA’s Data Center Rules
-- Spotlight PA/AP: Gov. Shapiro Puts Conditions On Fast-Track Perks For Data Centers Amid Community Backlash
-- Spotlight PA: Data Center Developers Pushing PA Government Officials To Sign Secrecy Agreements, At Least Some Are Saying Yes
-- The Center Square: Shapiro Reverses Course On Data Center Industry He Once Embraced
-- PA Capital-Star: Gov. Shapiro Signs Data Center Executive Order, Critics Say It Falls Short
-- WHYY - Susan Phillips: Gov. Shapiro Signs Wide-Ranging Executive Order Reining In Data Center Development
-- WITF: Shapiro Imposes New Restrictions On Data Center Development In PA
-- Erie Times/USA Today: Shapiro’s Data Center Order Draws Criticism From Garrity
-- Tribune-Democrat: Shapiro Signs Order To Tighten Oversight Of Data Center Developments
-- Observer-Reporter/AP: Shapiro Signs Executive Order Limiting Data Center Development
-- Inquirer: In A Major Shift, Gov. Shapiro Restricts Data Center Development In PA
-- Morning Call/Inquirer: Gov. Shapiro Signs Executive Order Restricting Data Center Development In PA
-- Pittsburgh Business Times: Gov. Shapiro Signs Executive Order On PA Data Centers
-- Pittsburgh Business Times: How Shapiro’s New Rules Will Impact Local Data Centers
-- Washington Post: PA Will Sharply Limit Data Center Development, Expand Review Process
-- Reuters: PA Governor Signs Order Imposing New Rules To Set Up A.I. Data Centers In State
-- Bloomberg: PA Gov. Shapiro To Limit New Data Centers
-- Wall Street Journal: PA Becomes Latest State To Restrict Data Center Construction
-- AP: Governor’s Races Being Increasingly Buffeted By The Politics Of Data Centers [PA Included]
[Posted: August 18, 2026] PA Environment Digest
