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AI data center regulation in Pennsylvania has taken a significant step forward with the introduction of Executive Order 2026-05 by Governor Josh Shapiro. This order requires developers to commit to a set of conditions known as the Governor’s Responsible Infrastructure Development (GRID) Requirements before their permit applications are reviewed by the Department of Environmental Protection (DEP). The order also mandates that developers secure local approval before their applications are considered.

One of the key aspects of the order is the elimination of nondisclosure agreements (NDAs) for data center projects. This move aims to increase transparency by requiring operators to disclose information such as energy consumption, water usage, and measures taken to protect the environment. Additionally, the order includes a provision for the public disclosure of all proposed data center projects that are being reviewed by the DEP.

Under the GRID framework, developers are required to cover the full cost of their project’s energy needs and engage with local communities early in the design process. They must also adhere to water conservation standards, hire and train local workers, and enter into community benefit agreements.

The order also addresses the issue of power consumption by data centers in times of grid strain. It directs the state’s Special Counsel for Energy Affordability to ensure that data centers bear the cost of reliability backstop auctions and prioritize curtailment of electric service to data centers during periods of strain.

Governor Shapiro’s approach to data center regulation in Pennsylvania stands out for its reliance on existing permitting powers rather than new legislation. By attaching penalties to a voluntary contract signed by developers, the state aims to ensure compliance with environmental and community standards. The order emphasizes the importance of transparency and community engagement in the development of data center projects.

The impact of this regulatory approach extends beyond Pennsylvania, influencing discussions on data center regulation in other states. The shift towards greater transparency and accountability in data center development is evident in recent legislation enacted in states like California, Ohio, and Utah.

In conclusion, Pennsylvania’s approach to AI data center regulation sets a new standard for industry accountability and community engagement. By prioritizing transparency and environmental responsibility, the state aims to ensure that data center development benefits both the economy and the environment. The order represents a significant milestone in the ongoing evolution of data center regulation in the United States.