Shapiro Order Blocks Data Centers Without Local Approval

Shapiro Order Blocks Data Centers Without Local Approval

Large windowless data center building with cooling towers

The News

Pennsylvania Gov. Josh Shapiro signed an executive order Tuesday that lets the state block new AI data centers unless developers win local approval first and pay their own power bills.

Executive Order 2026-05, titled "Protecting Pennsylvania Consumers from Data Center Impacts," took effect immediately.

It strips every data center proposal out of Pennsylvania's fast-track permitting program and bars nondisclosure agreements between developers and the state.

Shapiro, a Democrat and a possible 2028 presidential candidate, helped land Amazon's $20 billion data center investment in Pennsylvania last year. He calls the new rules the strictest in the country.

What The Order Requires

The order directs the Pennsylvania Department of Environmental Protection to fold Shapiro's Responsible Infrastructure Development standards — branded GRID — into its review of new data center proposals, according to the governor's office.

Developers must make legally enforceable commitments on energy affordability, environmental protection, workforce development, transparency and community engagement. They must secure all required local approvals before DEP issues any permit.

They must pay for the energy infrastructure their facilities need without shifting those costs onto Pennsylvania households and businesses; report their energy and water consumption; hire and train local workers; engage residents; and meet water-conservation standards.

Projects that fail the GRID requirements do not qualify for the state's sales and use tax exemption on eligible equipment.

The Epoch Times reported the guardrails apply to projects designed to draw more than 25 megawatts, and that above that threshold a project needs a consent order, an agreement, and sign-off from the municipality or county where it would sit.

Shapiro stopped short of a moratorium on permits, Fortune reported. NTD reported the order also bars any office or agency under his jurisdiction from signing nondisclosure agreements with developers.

Which Projects It Touches

The administration has published an online map of proposed data centers that have contacted DEP so residents can track permit applications.

Publicly sourced databases have identified more than 100 proposed projects in Pennsylvania, the administration said. Fifty-eight have communicated with DEP about permitting, 15 have applied for at least one permit, and five already hold the permits needed for their first phases.

At his news conference Shapiro singled out developers seeking to build six campuses of roughly 50 server warehouses in tiny Archbald Borough, Fortune reported — a fight that has produced a community uprising, a lawsuit by one developer and motions by another to force the recusal of six of the town's seven council members.

On CBS Mornings Wednesday, Shapiro also named a project proposed beside Eddie Staback Park in Lackawanna County and one in a densely populated part of Montgomery County about seven miles from him.

Timeline

June 9, 2025

Shapiro announces Amazon's commitment of at least $20 billion for data center campuses, which he called the largest private-sector investment in Pennsylvania history.

June 2026

A Reuters/Ipsos poll finds only about a third of Americans approve of the pace of data center construction, and just 14% support one being built in their community.

July 2026

New York Gov. Kathy Hochul imposes a one-year moratorium on large new data centers.

Early August 2026

Texas Gov. Greg Abbott pauses approvals for new projects, citing grid reliability.

Aug. 18, 2026, 1 p.m.

Shapiro signs Executive Order 2026-05 in the Governor's Reception Room at the state Capitol in Harrisburg.

Aug. 18, 2026

The same day, in Austin, Abbott says companies are complying with his directives and that one project shut down rather than comply.

Aug. 19, 2026

Shapiro defends the order on CBS Mornings.

Reactions

"My message to data center developers is clear: If you can't agree to our strict standards and get the community where you want to build to say 'yes,' you're not going to have the Commonwealth's support either," Shapiro said. "These are some of the biggest companies in the world. They can afford to be good neighbors, follow the rules, and do this right."

"I don't want developers running roughshod across our communities," he told CBS Mornings. "We've seen too many developers who are trying to bulldoze our community with these speculative deals that are never going to come into reality."

On X, Shapiro said he was "implementing the strictest standards in the nation for AI data centers—because I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies."

Republican Senate Majority Leader Joe Pittman said Shapiro had been "all in on AI" and that his order showed "how afraid he's become over his previous record of embracing data centers." Pittman said Senate Republicans moved to strip favorable tax treatment from data centers in the state budget and that the Democrat-controlled House amended the measure "into something unrecognizable." He added: "Together, I am confident we can work to safeguard our communities, foster economic growth, and build a stronger Pennsylvania for future generations to come."

Shapiro's Republican opponent for governor, Stacy Garrity, said he "lit the fuse on the chaos we are seeing in community after community."

Shapiro said the state House passed protections requiring data centers to bring their own power, pay their electricity costs, be transparent with communities, hire local workers and protect air and water, but the Republican-controlled Senate did not act — leaving him, he said, "no other option but to protect the people of Pennsylvania by taking executive action."

Lt. Gov. Austin Davis said Pennsylvania should not reverse three decades of environmental progress: "As a parent, I think every single day about the kind of world I want to leave to my daughter, and that world has clean air for everyone to breathe and plentiful clean water for everyone to drink."

The Washington Examiner's opinion page framed the shift as Shapiro going "from 'all in' to tap the brakes" on the state's tech boom.

What's Next

DEP now has to write the GRID guardrails into its permit reviews, and developers of projects above the threshold will need consent orders and local sign-off before permits move.

Pennsylvania's legislature remains split: the House bill Shapiro wants is still parked in the Senate, and Pittman has signaled a tax-treatment fight instead.

Data centers are now a live issue in November's governor's races. In Texas, Abbott has promised a legislative agenda next year to regulate data centers and end the state's tax break, while Democratic challenger Gina Hinojosa is running rural TV ads accusing him of "selling you out." In Ohio, nominees Amy Acton and Vivek Ramaswamy have each rolled out competing data center policies.

More

Pennsylvania is the third state to impose sweeping restrictions on data center construction, behind New York and Texas, Townhall reported. Arizona Gov. Katie Hobbs got lawmakers to agree to a three-year moratorium on the state's sales tax exemption, calling it a "corporate handout," and Illinois Gov. JB Pritzker halted new sales tax exemptions until lawmakers toughen standards.

The Texas pause covers roughly 1,800 projects seeking approval to connect to the state grid, requesting nearly 474 gigawatts — five times the state's record peak demand, The Center Square reported. Abbott's directives require companies not to take water or power communities need, to lower electricity costs and to avoid disrupting neighborhoods. The Data Center Coalition, an industry group, said its members are committed to "protecting residential ratepayers, strengthening grid reliability, and promoting responsible water stewardship" and to distinguishing "between speculative projects and serious, committed investors."

Public opinion is the backdrop. CBS News/YouGov polling finds Americans far more likely to oppose new data centers in their area than support them, even though most say they know only a little or nothing about them. The Frank reported earlier Wednesday on a Republican memo warning AI firms that data centers have become politically radioactive.

Pennsylvania has drawn developers because of Marcellus shale natural gas, existing power infrastructure and proximity to East Coast population centers.

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