Pennsylvania tightens rules and slows permits for new data centers

In short: Pennsylvania Governor Josh Shapiro signed an executive order that slows and adds stricter conditions to new large data center projects, especially those tied to AI.

What happened

In August 2026, Shapiro signed Executive Order 2026-05. It tells Pennsylvania’s Department of Environmental Protection to review data center permit applications only after two things happen. Developers must make a legally binding promise to follow the state’s new GRID requirements, and the project must already have local approval.

The order also removes AI and data center projects from the state’s “Permit Fast Track” program. In plain terms, these projects no longer get to jump to the front of the line for quicker decisions.

Shapiro also barred state agencies from using non-disclosure agreements with data center developers. That means fewer deals can be hidden behind secrecy contracts, and the public should be able to learn more about a project’s size and impacts.

The GRID requirements focus on everyday concerns. They include making data centers pay the full cost of the electricity they need, including grid upgrades, instead of pushing those costs onto other customers. They also call for a significant share of power to come from clean energy, plans to limit water use for cooling, and more public disclosure about power demand and water use.

Why it matters

Data centers are like giant warehouses full of computers, and AI can make them use even more electricity and water. Supporters say the new rules protect utility customers and give towns more control, while critics worry the state is either not going far enough on pollution and water, or is scaring off construction money in former steel regions that want jobs.

Source: NYTimes