Pa. Governor Proposes New Standards for Data Centers

Shapiro says data centers must meet transparency, community, and environmental requirements to get state support.

Feb. 3, 2026 at 10:47pm

Got story updates? Submit your updates here. ›

Pennsylvania Governor Josh Shapiro announced new 'Governor's Responsible Infrastructure Development' (GRID) standards that data center developers must meet in order to receive state support and incentives. The standards aim to address concerns from local communities, consumer advocates, and environmentalists about the impact of energy-hungry data centers on utility bills, the environment, and water scarcity.

Why it matters

Data centers are a growing industry, but their energy demands and environmental impact have sparked backlash in many communities. Shapiro's proposal seeks to balance the economic benefits of data centers with measures to protect local communities and the environment.

The details

Shapiro said Pennsylvania is well-positioned to host more data centers due to its energy production and research capabilities, but acknowledged 'real concerns' from Pennsylvanians. The GRID standards would require data center developers to generate their own power, hire local workers, ensure transparency and community engagement, and implement environmental protections and water conservation measures. Companies that meet these standards would receive faster permitting and tax credits from the state.

  • Shapiro announced the new GRID standards during his annual budget address on February 4, 2026.

The players

Josh Shapiro

The Governor of Pennsylvania who proposed the new GRID standards for data centers.

PJM Interconnection

The regional grid operator that has said data centers have led to a narrowing gap between supply and demand, resulting in increasing electricity costs.

Penn State

A university in Pennsylvania with leading researchers in AI and machine learning, which Shapiro cited as an asset for data center development.

Carnegie Mellon University (CMU)

A university in Pennsylvania with leading researchers in AI and machine learning, which Shapiro cited as an asset for data center development.

University of Pennsylvania (Penn)

A university in Pennsylvania with leading researchers in AI and machine learning, which Shapiro cited as an asset for data center development.

Got photos? Submit your photos here. ›

What they’re saying

“I know Pennsylvanians have real concerns about these data centers and the impact they could have on our communities, our utility bills, and our environment. And so do I.”

— Josh Shapiro, Governor of Pennsylvania (whyy.org)

“If companies adhere to these principles, they will unlock benefits from the Commonwealth, including speed and certainty in permitting and available tax credits.”

— Josh Shapiro, Governor of Pennsylvania (whyy.org)

What’s next

The details of Shapiro's GRID standards and how they will be implemented are still to be determined. The state legislature will likely need to approve any new policies or incentives related to the standards.

The takeaway

Shapiro's proposal aims to strike a balance between the economic benefits of data centers and the environmental and community concerns they have raised. By setting new standards, Pennsylvania is positioning itself to be selective about which data centers it supports, prioritizing those that can demonstrate a commitment to transparency, local hiring, and environmental protection.