Governor Josh Shapiro signed an executive order on August 18 establishing legally binding standards for AI data centers in Pennsylvania, described as the strictest guardrails any U.S. state has ever imposed on AI-related infrastructure. The new rules require developers to bring their own power, bearing full electricity costs and sourcing an increasing share from clean sources rather than connecting to the existing grid and passing costs to ratepayers. The order eliminates the Fast Track permitting program, bans non-disclosure agreements between state agencies and developers, and requires community benefit agreements with local hiring and investments. Over 100 data center projects have been proposed in the state, attracted by cheap electricity, available land, and proximity to major East Coast population centers. Critics note these rules primarily apply to new projects, leaving communities near existing facilities or projects deep in the permitting pipeline without meaningful relief.
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