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

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.