Pennsylvania Tightens Rules for AI Data Centers, Orders Grid Cost Accountability

Pennsylvania Tightens Rules for AI Data Centers, Orders Grid Cost Accountability

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News Editor
2026-08-18 22:56:04
Pennsylvania Governor Josh Shapiro on Tuesday signed Executive Order 2026-05, setting new restrictions for large AI data centers and tying streamlined state review to a stricter set of environmental, energy, workforce, community, and local approval requirements. The order applies to facilities with peak electricity demand above 25 megawatts and is aimed in part at making developers bear some of the costs their projects impose on the state’s electrical grid. The move also removes data centers from Pennsylvania’s Permit Fast Track Program and bars state agencies from signing non-disclosure agreements connected to data center projects. The state will publish a public map of proposed facilities and require operating data centers to file annual reports on energy and water consumption starting in July 2027. Shapiro said the state would not allow developers to raise utility bills, ignore clean air and water protections, or pressure communities into accepting projects they oppose. The order also tells Pennsylvania’s Special Counsel for Energy Affordability to pursue utility rules that would require data centers to cover certain grid costs and face curtailment first in some emergencies unless they secure enough power to meet demand. The action comes as resistance to AI data centers grows across the U.S., with local communities pushing back over power use and environmental strain.

Pennsylvania Governor Josh Shapiro signed an executive order Tuesday that places new limits on large AI data centers, including measures meant to make developers pay for some of the strain their projects put on the state’s electric grid.

Pennsylvania Tightens Rules for AI Data Centers, Orders Grid Cost Accountability 2

Executive Order 2026-05 creates new requirements for data centers with peak electricity demand above 25 megawatts. Developers seeking a streamlined state review process must agree to Pennsylvania’s environmental, energy, workforce, and community standards, and they must also secure the necessary local approvals.

In a post on X, Shapiro wrote: 「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, and drive up our utility bills.」 He added: 「I’m using the full weight of my executive authority to block the objectionable, unwarranted projects and put the nation’s strictest set of protections in place.」

Order targets permits, transparency, and emergency power treatment

The order removes data centers from Pennsylvania’s Permit Fast Track Program and prohibits state agencies from entering into non-disclosure agreements related to data center projects.

Pennsylvania will also create a public map showing proposed facilities. Operating data centers will be required to report their annual energy and water consumption beginning in July 2027.

Shapiro’s order also directs the state’s Special Counsel for Energy Affordability to pursue utility rules that would make data centers cover certain grid costs. In some emergency situations, those facilities would also be first in line for curtailment unless they have secured enough electricity to serve their own demand.

In the executive order, Shapiro said more than 100 data centers have reportedly been proposed across Pennsylvania, but only 20 have submitted permit applications to the state Department of Environmental Protection.

He also wrote: 「From Archbald to Montgomery County to all across Pennsylvania, to your comments, texts, calls, and letters to my office, I’ve heard you loud and clear.」 Shapiro added that Pennsylvanians do not want AI data centers in their communities if those projects would raise utility costs and pollute local resources.

Backlash against AI data centers keeps spreading in the U.S.

Opposition to AI data centers has spread across the United States as more projects move forward and communities push back against rising electricity demand and environmental pressure.

In January, a Brookings analysis warned that local resistance could slow or block AI infrastructure projects. It called for binding community benefit agreements.

In March, Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed a White House pledge to pay for the new electricity generation and infrastructure needed for their data centers. The pledge came after costs rose following the start of the U.S.-led war with Iran.

Disputes over data centers have also shifted more heavily to local governments. By August, at least 37 people had been arrested this year in protests across the U.S. tied to AI data centers.

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