The decree removes facilities from fast-track permits, bans agency nondisclosure agreements, and mandates local approval, marking a sharp pivot from his earlier industry support.
Executive Order and Stricter Oversight in Harrisburg
Pennsylvania Governor Josh Shapiro announced significant restrictions on data center projects, signing an executive order to stop predatory backers and bad proposals from infecting the commonwealth.
The state has become a sought-after location for data centers due to its abundant natural gas from the Marcellus shale basin, existing power infrastructure, and proximity to major population centers on the East Coast, according to the Reuters report.
“I’m using the full weight of my executive authority to block the objectionable, unwarranted projects and put the nation’s strictest set of protections in place.”
Gov. Josh Shapiro, via Reuters
Mandatory Safeguards and Permitting Changes
Under the new order, prospective builders face rigorous hurdles before winning state approval. The regulations remove all data center projects from the commonwealth’s fast-track permitting program and bar any office or agency under Shapiro’s jurisdiction from signing nondisclosure agreements with developers.
Developers must secure local community approval and commit to guidelines that require them to pay for their own power, hire locally, maintain transparency with local governments, and adhere to high water-conservation standards. Shapiro emphasized that these measures represent the most stringent requirements in the entire country.
Shapiro stated that developers who refuse to comply with requirements will have no pathway to approvals and will be disqualified from existing tax exemptions on data center equipment.
Community Concerns and Political Shift
The policy shift follows growing public pushback against the rapid build-out of facilities fueling artificial intelligence’s rise. A June Reuters/Ipsos poll found that only a third of Americans approved of the pace of data center construction, while just 14% supported a data center being built in their community. Prospective builders must now agree to several requirements, including an energy plan that will not shift costs to Pennsylvania households and securing local buy-in.
Shapiro noted that developers must respect local communities by being transparent, hiring locally, and securing community benefits agreements. He emphasized that local community approval is a prerequisite for state approval.
Shapiro noted that since two major data center projects were announced last year, the state has seen an unacceptable number of speculative proposals. Citing constituent feedback and aggressive developer tactics, the governor stated that the lack of legislative progress on passing new regulations under a split state legislature left him no choice but to act via executive order.
Regional Actions Across the Country
Pennsylvania joins several states moving to limit facilities that strain power grids. In New York, Democratic Governor Kathy Hochul signed a moratorium on large new data centers in July, while Texas Governor Greg Abbott paused approvals for new projects earlier in August over concerns that rising electricity demand could threaten reliability.
At the federal level, President Donald Trump’s administration has promoted the Ratepayer Protection Pledge, under which developers fund the cost of increased power generation and infrastructure.
Constitutional Mandate and Immediate Enforcement
The executive order took effect immediately upon signing.
Shapiro stated that developers must meet the constitutional obligation under Article 1, Section 27, which guarantees Pennsylvanians the right to clean air and pure water.
