Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05 on August 18, changing the permit review process for data centers with peak demand exceeding 25 MW. Two review tracks will apply depending on whether the developer signs a binding agreement with state regulators, with non-signing developers having to wait until all applications are filed. The order also removes all data centers from the Fast Track permitting program and requires every project to match the local comprehensive plan and hold municipal approvals before any review. Data centers drove $29.4 billion in capacity charges to ratepayers across PJM Interconnection’s last four base residual auctions, representing 46% of total auction costs. Pennsylvania joins New York and Texas in a growing backlash against AI data center expansion.
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