Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday that establishes new requirements for large AI data centers, aiming to ensure they address their impact on the state’s electrical grid and environmental resources. The order specifically targets data centers with a peak electricity demand exceeding 25 megawatts.
Key provisions of the executive order include removing data centers from the state’s Permit Fast Track Program, which offers streamlined review processes. Additionally, state agencies will be prohibited from entering into non-disclosure agreements related to data center projects. Pennsylvania will also create a public map of proposed data center facilities.
Operating data centers will be required to report their energy and water consumption annually, with these requirements set to begin in July 2027. The executive order also directs the state’s Special Counsel for Energy Affordability to pursue utility rules that would make data centers responsible for certain grid costs and prioritize them for curtailment during emergencies, unless they can secure sufficient power to meet their demand.
According to Governor Shapiro, the order is intended to prevent developers from negatively impacting Pennsylvanians by disregarding the constitutional right to clean air and pure water and driving up utility bills. He indicated that the order aims to block projects deemed objectionable and unwarranted, establishing what he described as the nation’s strictest set of protections.
Governor Shapiro noted that more than 100 data centers have reportedly been proposed in Pennsylvania, though only 20 have submitted permit applications to the state’s Department of Environmental Protection. Shapiro stated that he has heard concerns from communities across the state, including Archbald and Montgomery County, regarding the potential for AI data centers to raise utility costs and pollute resources.
The executive order comes amid a broader trend of opposition to AI data centers across the U.S., driven by concerns over electricity consumption and environmental impacts. A Brookings analysis from January warned that local resistance could slow or block AI infrastructure projects and called for community benefit agreements. In March, major technology companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed a White House pledge to cover the costs of new electricity generation and infrastructure needed for their data centers.
Protests against AI data centers have also occurred nationwide, with at least 37 people arrested this year in connection with such demonstrations. The fight over data center development has increasingly shifted to local government levels.
This executive order signifies a notable shift in Pennsylvania’s approach to regulating large AI data centers, reflecting growing national concerns about their energy consumption and infrastructure demands. The new requirements aim to ensure these facilities are developed and operated in a manner that addresses their impact on the state’s electrical grid and environment.
Specific details regarding the utility rule changes sought by the state’s Special Counsel and the precise metrics for energy and water consumption reporting are still to be determined. The exact start date for the “this year” in relation to the arrests and the specific year of the Brookings analysis and White House pledge are also not detailed.
Why This Matters
The materials describe a narrow update: Pennsylvania’s Governor Josh Shapiro signed an executive order that establishes new requirements for data centers with peak electricity demand above 25 megawatts. The exact start date for the “this year” in relation to the arrests.
Broader Context
Source materials place the factual news in this context: Pennsylvania Governor Josh Shapiro signed an executive order Tuesday imposing new restrictions on large AI data centers, including rules aimed at making developers pay for their impact on the state’s electrical grid.
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