Pennsylvania Gov. Josh Shapiro on Tuesday signed Executive Order 2026-05 directing state agencies to require data center proposals to meet new Responsible Infrastructure Development (GRID) Requirements, an effort meant to rein in speculative projects and increase local oversight of large-scale data center developments.
Why the order was issued
Shapiro said the commonwealth is reviewing more than 100 data center proposals, many of which he called speculative and lacking in concrete plans or financing. He said only a handful of projects have cleared permitting hurdles and that none of the announced projects for artificial intelligence-specific data centers are operational in Pennsylvania.
"Most of those proposals are completely speculative, and many of them haven't even taken the formal steps to apply to the Commonwealth, and they'll never be built," Shapiro said.
The governor framed the executive order as a response to growing concern among residents and local officials over potential impacts of rapid data center expansion, including effects on local infrastructure, energy rates and the environment.
What the executive order requires
The order instructs the Department of Environmental Protection and other agencies to ensure that proposals meet GRID standards before agencies support or process applications. Shapiro emphasized that the measure targets developers who have marketed projects without firm customers, financing or local agreements.
- Purpose: Deter speculative projects without committed users or financing.
- Local control: Increase community input and require better coordination with municipal officials.
- Environmental scrutiny: Pending DEP review to evaluate permit applications under tighter standards.
Shapiro cited two large projects announced last summer — one in Salem Township, Luzerne County, and another in Falls Township, Bucks County — as examples of developments that can bring significant investment and jobs when grounded in concrete plans. He said those projects are expected to produce thousands of jobs and more than $20 billion in investment, figures he offered as the contrast to the many proposals he labeled speculative.
Local officials and community concerns
The executive order comes after complaints from municipal leaders and residents that some developers had approached communities aggressively, pressuring them to approve projects before plans or financing were secured. Shapiro said he has heard directly from Pennsylvanians worried about what data center proliferation could mean for their utility bills, land use and local services.
"I've listened to the people of Pennsylvania — and I've heard directly from many residents across our Commonwealth who are concerned about what data center development could mean for our communities, our environment, and our utility bills," the governor said.
Under the order, developers can expect states agencies to require more robust documentation of financing, binding customer agreements for proposed data center space and clearer plans for mitigating community impacts before projects advance in state permitting or receive state support.
Numbers at a glance
| Metric | Figure |
|---|---|
| Proposals under discussion | More than 100 |
| Projects with permits to begin operations | Five |
| Announced investment for two major projects | $20 billion+ |
State officials did not provide immediate detail on how the GRID requirements would be applied to permit timelines or whether the action would affect projects already in advanced stages of review. The executive order directs agencies to adopt the requirements as part of their review processes.
What this means for stakeholders
For communities hosting proposed data centers, the executive order promises greater leverage in negotiations and stronger assurances that projects include financing and end users before moving forward. For developers, the move raises the bar for the documentation and commitments required to get state-level approvals.
Energy providers and environmental groups will be watching how DEP applies the new standards, since data centers can draw large and sustained power loads that may require new transmission or generation resources. Local governments may see additional opportunities to secure community benefits or infrastructure commitments as part of future project reviews.
The governor’s action represents a state-level attempt to balance economic development goals with protections for communities and ratepayers as data center interest in Pennsylvania grows. The long-term impact will depend on how state agencies implement GRID requirements and how both developers and local officials respond.
