Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05, directing the Department of Environmental Protection to only review permit applications from data center developers who have made a legally binding commitment to meet the Governor's Responsible Infrastructure Development (GRID) Requirements and have received local approval. The order effectively blocks speculative data center projects from moving forward.
The executive order also removes all AI data center proposals from Pennsylvania's Permit Fast Track Program and prohibits the use of nondisclosure agreements for data center projects — a significant transparency requirement that addresses a common community concern about the secrecy surrounding data center development.
The GRID Requirements
The GRID Requirements demand that developers meet strict standards across four key areas: energy affordability — developers must pay the full cost of new electricity generation, transmission, distribution, and other infrastructure needed to power their projects without shifting costs to Pennsylvania households and businesses; environmental protection — including water consumption reporting and pollution prevention; workforce and economic development — including local hiring commitments; and transparency and community engagement.
Data center operators will also be required to submit annual information on energy and water consumption, including total energy consumption, total natural gas consumption, peak energy usage, total water consumption, maximum day demand, and any environmental protection measures taken.
A Collaborative Approach
Notably, the GRID Requirements have earned support from a broad coalition of environmental advocates, organized labor, industry leaders, and local government stakeholders. This collaborative approach stands in contrast to the more confrontational dynamics seen in some other states.
Governor Shapiro's office framed the order around the principle that "growth should pay for growth" — a concept that aligns with ADIC's long-standing position that data center development should not unfairly shift infrastructure costs onto existing ratepayers.
Implications
Pennsylvania's approach — setting clear, enforceable standards rather than imposing blanket moratoriums — represents a model that other states may follow. The GRID framework provides developers with a clear pathway for project approval while ensuring that communities and ratepayers are protected.
The executive order also highlights the growing role of state-level policy in shaping data center development. As federal action has focused on accelerating permitting, states are increasingly developing their own frameworks to address the community, environmental, and ratepayer dimensions of digital infrastructure growth.
