Additional Coverage:
- Gov. Josh Shapiro takes a hard line against ‘predatory’ data center developers in Pennsylvania (nbcnews.com)
Pennsylvania Governor Josh Shapiro has issued a new executive order placing stricter controls on data center developments across the state, aiming to curb what he described as “predatory” practices by some developers. This move marks a significant policy shift for Shapiro, who previously supported expanding the data center industry within Pennsylvania.
In announcing the order, Shapiro emphasized his commitment to protecting local communities from aggressive development tactics. “We will not be bullied by these developers,” he declared, underscoring a pledge to stand up against legal and corporate pressure from large tech companies. He framed the new regulations as a response to a surge of speculative proposals that, in his view, threaten the character and well-being of Pennsylvania neighborhoods.
Key provisions of the executive order require that all data center projects receive approval from local officials before moving forward. Developers must also agree to abide by guidelines established earlier this year, which include paying for their own power, hiring locally, maintaining transparency with municipalities, and adhering to strict water conservation standards. Additionally, Shapiro announced that data centers will no longer qualify for the state’s fast-track permitting program, and nondisclosure agreements related to these projects will be prohibited.
This policy change comes amid rising opposition to data center expansions in Pennsylvania and nationwide. Concerns voiced by residents and local leaders focus on potential increases in power costs, environmental impacts, and unease over the rapid growth of artificial intelligence technologies. Similar measures have been taken in other states recently; for example, New York has imposed a moratorium on data center construction, and Texas has paused audits of such projects.
Shapiro acknowledged that his perspective has evolved through direct conversations with Pennsylvanians. “The feedback I’ve gotten has shaped my perspective on this,” he said, signaling a shift from his earlier enthusiasm about the industry’s role in bolstering the state’s economy and national competitiveness in AI development.
The data center sector maintains that it brings valuable economic benefits, including job creation, increased tax revenues, and potential property tax relief for host communities. Industry representatives argue that environmental concerns are often exaggerated or based on incomplete information.
Despite the new restrictions, Shapiro stressed that only a handful of projects have proceeded to the permitting stage, while numerous speculative proposals have unsettled communities. His executive order aims to restore local control and establish clear, enforceable standards for future developments.
As Pennsylvania prepares for upcoming elections, data center regulation has become a contentious issue, reflecting broader national debates over balancing economic growth with community and environmental protections. Governor Shapiro’s latest action signals a more cautious and community-focused approach to managing this rapidly expanding industry within the state.