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Shapiro Orders Strict State Rules for AI Data Centers

Using executive authority, the order forces developers to fund their own power, meet conservation and transparency rules, obtain local sign-off, creating legal uncertainty for announced projects.

Overview

  • Gov. Josh Shapiro signed Executive Order 2026-05 to make his Governor’s Responsible Infrastructure Development (GRID) standards legally binding for new data-center proposals, removing them from Pennsylvania’s fast-track permitting program.
  • The order requires developers to contractually commit to supply and pay for their own electricity, follow water-conservation rules, report energy and water use, hire and train locally, and face penalties if they breach consent orders.
  • The administration bars state agencies from signing nondisclosure agreements, mandates a public map of proposed projects, and makes projects ineligible for the state sales-tax exemption if they refuse GRID terms.
  • The action, taken Tuesday, gives local governments decisive power because DEP will withhold state permits until projects secure required local approvals, leaving major announced investments such as Amazon’s plans unclear and open to delay or legal challenges.
  • Pennsylvania’s move follows similar gubernatorial actions in other states and reflects strong public unease over energy, water and community impacts, which is reshaping campaign messaging and could prompt further state-level rules or court fights.