Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday that will require companies building AI data centers in the state to meet environmental and transparency standards and obtain local community approval for their projects. The order takes effect immediately and removes all data centers from the state's Fast Track permit program.
The state has become a prime target for data center development because of its abundant natural gas from the Marcellus shale basin, existing power infrastructure, and proximity to East Coast population centers. But opposition to the rapid build-out of data centers has grown across the U.S. this year. A June Reuters/Ipsos poll found that only a third of Americans approved of the pace of data center construction, and just 14% supported a data center being built in their community.
Strictest protections in the nation
Shapiro said the order also bars any office or agency under his jurisdiction from signing non-disclosure agreements with data center developers. "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," he said on social media platform X.
The governor said the measures are intended to prevent data center projects from driving up utility bills and to protect Pennsylvanians' rights to clean air and water. The order applies to all new data center projects and removes them from the state's expedited review process, meaning each project will now face a fuller public review.
Other states tightening rules
Pennsylvania is not alone in pushing back on data center expansion. New York imposed a one-year moratorium on large new data centers in July. Earlier this month, Texas Governor Greg Abbott paused approvals for new projects, citing concerns that rising electricity demand could threaten grid reliability.
Amazon last year announced $20 billion in planned investment in Pennsylvania, underscoring the state's appeal as a destination for data center development. The new order will affect how such large-scale projects are reviewed and approved going forward. For government officials tracking these developments, the shift reflects a broader policy question about how states balance economic growth with community and environmental concerns - a topic covered in AI for Government resources.
Why this matters for government professionals
This order gives state and local officials a template for managing data center growth without ceding oversight to developers. The key change is procedural: data centers no longer qualify for fast-track permitting, and agencies cannot use NDAs to shield project details from public scrutiny. That means officials in other states considering similar measures will need to prepare for longer review timelines and more direct engagement with local communities on issues like electricity rates and environmental impact. For those involved in drafting or implementing such policies, the AI Learning Path for Policy Makers offers practical guidance on the regulatory questions these projects raise.
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