What happened
On August 18, 2026, Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05, directing the Department of Environmental Protection to review data center permit applications (including AI data centers) only where developers make a legally binding commitment — via a Consent Order and Agreement — to meet the Governor's Responsible Infrastructure Development (GRID) Requirements and have secured all required local approvals. The order immediately removes all AI data center proposals from the state's Fast Track permitting program (including previously fast-tracked projects), prohibits state agencies from entering non-disclosure agreements with data center developers, requires DEP to publish a public map of permitting status for all proposed projects, and directs the Department of Revenue to condition the Computer Data Center Equipment sales-tax exemption on GRID compliance. GRID Requirements cover energy affordability (developers must bring their own generation and bear costs of increased energy usage), environmental protection, transparency, community engagement, and workforce/economic development commitments including community-benefit agreements.
Why it matters
This is a binding, immediately effective state executive action that materially reshapes how AI computing infrastructure can be sited and permitted in a major US state with over 100 pending data center proposals. By stripping AI data centers of expedited permitting, mandating local-government veto power, requiring developers to self-fund power generation, and banning NDAs (increasing public disclosure of project details), the order raises costs, timelines, and transparency obligations for AI infrastructure buildout — a template other states facing similar community backlash against AI-driven data center growth are likely to follow.
Action needed
AI data center developers with pending or planned projects in Pennsylvania must sign a legally binding Consent Order and Agreement committing to GRID Requirements (energy self-sufficiency, transparency, community-benefit agreements) and obtain all required local approvals before DEP will process state permits; any project previously in the Fast Track program has been removed and must proceed under standard review; NDAs with state agencies regarding data center projects are no longer permitted.