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Shapiro signed Executive Order 2026-05 on Tuesday, directing state agencies to require data center proposals seeking Commonwealth permits to comply with the administration's new Governor's Responsible Infrastructure Development, or GRID, Requirements.
Under the order, the Pennsylvania Department of Environmental Protection will evaluate permit applications for proposed data centers only after developers make a legally binding commitment to meet the GRID requirements and receive approval from the municipality where the project would be located.
The requirements address several areas associated with the rapid expansion of data centers, including energy affordability, environmental protection, community involvement, workforce and economic development, and transparency.
Shapiro described the new rules as an effort to allow Pennsylvania to benefit from the economic development associated with artificial intelligence and data centers while protecting communities from potential negative impacts.
The order states that without proper controls, large-scale data center development could affect Pennsylvania's constitutional right to clean air and pure water because of the facilities' potential emissions, water consumption and significant electricity demands.
One of the most significant changes involves the state's PA Permit Fast Track Program. Shapiro ordered all artificial intelligence data center projects immediately removed from the program and directed that future data center projects not be considered for inclusion.
The administration says the move is intended to prevent speculative projects from receiving expedited state consideration before developers demonstrate that they can meet the state's requirements.
The executive order also calls for greater public disclosure surrounding proposed developments. According to the Shapiro administration, nondisclosure agreements involving data center projects will not be permitted under the new policy.
Local municipalities will also have a larger role. Developers must obtain local approval before DEP evaluates their permit applications, giving municipal officials an opportunity to weigh the potential benefits and impacts of a project before it advances through the state permitting process.
Shapiro said feedback from Pennsylvania residents helped shape his administration's approach to the rapidly growing industry. Concerns surrounding data center development have increased as communities across Pennsylvania face proposals for facilities that can require substantial amounts of electricity, water and land.
The GRID requirements are also intended to address electricity costs. The administration has argued that data center developers, rather than residential and other existing utility customers, should bear costs associated with the additional energy infrastructure needed to serve their projects.
Developers will additionally be expected to engage with communities and demonstrate economic benefits, including commitments related to Pennsylvania workers and workforce development.
The executive order comes as Pennsylvania and other states see increasing interest in large-scale data center construction driven in part by the growth of artificial intelligence and cloud computing.
Shapiro has maintained that Pennsylvania should compete for those investments but has increasingly emphasized that development should occur under conditions designed to protect residents, natural resources and electricity customers.
The new requirements apply to data center proposals requiring permits from Commonwealth agencies and place local approval and a binding commitment to the GRID standards ahead of DEP's evaluation of a project.