Pennsylvania Gov. Josh Shapiro announced significant restrictions on data center projects Tuesday, signing an executive order to stop \u201cpredatory\u201d backers and \u201cbad proposals from infecting our commonwealth.\u201d<\/p>\n
The order, along with the warnings in his remarks for potential data center developers, marked a notable shift for Shapiro, a potential 2028 Democratic presidential contender, who had sought to encourage the industry\u2019s build-out in his state.<\/p>\n
\u201cI\u2019ve heard loud and clear from the good people of Pennsylvania as I\u2019ve traveled our commonwealth, and I\u2019m here to say today that we will not be bullied by these developers,\u201d Shapiro said. \u201cWe will not be bulldozed by the lawyers working for these big tech companies. That will not happen in the commonwealth. We have a long history in Pennsylvania of industry running roughshod over our communities to make a buck \u2014 that stops with me.\u201d<\/p>\n
The new order mandates that data center projects must first be approved by local officials. Developers must also sign a legally binding order in which they commit to guidelines Shapiro laid out in February \u2014 which were first reported by NBC News \u2014 among them that they pay for their own power, hire locally, be transparent with local governments and adhere to high water-conservation standards.<\/p>\n
Shapiro also said that he is removing all data center projects from his state\u2019s fast-track permitting program and that going forward, they would be ineligible for those measures. He also said nondisclosure agreements for data center projects will not be allowed in the state under his new order.<\/p>\n
Shapiro said in his remarks that since it announced two major data center projects in the state last year \u2014 Amazon-backed developments he touted \u2014 the state has \u201cseen an unacceptable number of speculative proposals for data centers swamp our commonwealth \u2014 many of them led by developers who have no regard for local communities.\u201d<\/p>\n
Shapiro, who also faces re-election this fall, has evolved his views on data centers within the last year as the projects have faced increasing opposition in the state and nationally. Last week, The Philadelphia Inquirer wrote about how Shapiro\u2019s early embrace of the projects was testing his high approval ratings with voters who are skeptical of the developments.<\/p>\n
This is what it sounds like to live near a data center<\/p>\n
Even in announcing guidelines this year to manage the data center boom, Shapiro framed the need for Pennsylvania \u201cto play a leading role\u201d in the battle for AI supremacy against China. He said that \u201cno sector of our country\u2019s economy is growing faster than data centers and artificial intelligence,\u201d though the U.S. needed to be \u201cselective\u201d about the projects it pursued.<\/p>\n
He took a much different tone Tuesday, criticizing \u201cspeculators\u201d in the industry for \u201cscaring our communities\u201d and \u201cbeing aggressive with township officials, bullying our neighbors, our fellow Pennsylvanians, and refusing to listen to the people.\u201d<\/p>\n
\u201cThey\u2019re threatening to fundamentally change the character of our communities,\u201d he said, adding that the lack of legislative progress on passing new regulations for data center development \u2014 Pennsylvania\u2019s Legislature is under split control \u2014 left him no choice but to move on the executive order.<\/p>\n
He called out specific data center proposals he has opposed, one of them in Montgomery County, where he lives, saying a developer was trying to \u201cbully his way into forcing data center projects through local opposition from the community and local officials.\u201d<\/p>\n
\u201cI\u2019m a hell no on that project,\u201d he said, adding, \u201cI\u2019m a hell no on many other projects.\u201d<\/p>\n
Repeatedly, he credited his evolution on data centers to conversations he has had with concerned Pennsylvania residents, saying the \u201cfeedback I\u2019ve gotten … has shaped my perspective on this.\u201d<\/p>\n
Democrats and Republicans both are recalibrating on data center development as opposition has ramped up across the midterm landscape. Opponents have expressed concerns about the potential for rising power bills, environmental worries or fears over the growth of AI technology, among other concerns.<\/p>\n