Pennsylvania Governor Josh Shapiro (D) has tightened the rules for AI data centers, requiring developers to meet strict energy, environmental and transparency standards and secure local approval before projects can move forward.

Shapiro Takes Aim at AI Data Center Developers

On Tuesday, Shapiro signed an executive order implementing Governor's Responsible Infrastructure Development (GRID) requirements.

GRID gives local communities greater control over proposed data centers while requiring developers to address their energy and environmental impacts.

The order requires developers to make legally binding commitments to the GRID standards, including covering the electricity costs associated with their facilities and meeting clean-energy requirements.

Projects must also receive local approval before the state Department of Environmental Protection reviews their permits.

"I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies," Shapiro said on X.

Pennsylvania Removes Data Centers From Fast-Track Permits

The governor also immediately removed data centers from Pennsylvania's Fast Track permitting program, meaning future projects will no longer qualify for expedited state permitting.

The order additionally bars state agencies under Shapiro's authority from entering nondisclosure agreements with data center developers, a move designed to increase transparency around proposed projects.

Shapiro described the measures as the "nation's strictest" protections for AI data center development.

His policy marks a shift from last year, when he praised Amazon.com, Inc. (AMZN)'s $20 billion plan to build two data center campuses in Pennsylvania.

Shapiro Says Communities Must Have a Voice

Shapiro said he changed his approach after hearing concerns from residents about data centers' potential effects on utility bills, the environment and local communities.

"While Fast Track permitting has proven to be an incredible asset … it's not right for this kind of development," Shapiro said.

The Pennsylvania House passed legislation in June to codify the GRID requirements, but the state Senate has yet to vote on the measure. Shapiro said the lack of legislative action left him with "no other option" but to act through executive authority.

Trump Slams New York's AI Data Center Moratorium

Last month, New York Governor Kathy Hochul (D) imposed the nation's first statewide moratorium on new hyperscale data centers, temporarily suspending environmental permits for as long as one year.

At the time, Donald Trump took to Truth Social to criticize the policy as a "terrible decision," arguing that it could push investment, tax revenue and jobs toward states that are more welcoming to data center projects.