On August 18, 2026, Governor Josh Shapiro signed Executive Order 2026-05, a new Pennsylvania data center executive order addressing the growth of data center development across the Commonwealth. The order begins implementing the Governor’s Responsible Infrastructure Development (GRID) Requirements, which were first announced earlier this year.

More than 100 data center projects have reportedly been proposed in Pennsylvania, though as of the order’s effective date, the Department of Environmental Protection had received permit applications for 20 of those projects. The order establishes new permitting standards, enhanced transparency requirements, and new ratepayer requirements that will govern data center development moving forward.

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Why This Executive Order Matters

Data center development has become a significant source of investment in Pennsylvania. According to the Pennsylvania Chamber of Business and Industry, the industry added $14.4 billion to the state economy in 2023, rising to $21.2 billion when spillover effects are included. The Chamber has also pointed to more than $90 billion in announced Pennsylvania energy and data center projects, along with individual developments such as CoreWeave’s $6 billion Lancaster County project, which is expected to create 175 permanent jobs in addition to 600 construction jobs, and the PowerHouse Data Centers PAX 1 campus in Middlesex Township, projected to generate roughly $10 million annually for the township and $45 million for the local school district, along with about 500 permanent jobs and 1,400 construction positions. Industry groups have also noted that data center jobs tend to support additional employment in construction, maintenance, and local services.

Alongside that investment, data centers are also driving a significant amount of new electricity demand. According to PJM Interconnection’s 2025 Load Forecast, the regional grid operator projects 74 gigawatts of new summer peak load through 2045, with data centers cited as the primary driver. That demand has already had a measurable effect on Pennsylvania consumers. Across PJM’s last four capacity auctions, data centers accounted for nearly $29.4 billion in capacity charges, or 46 percent of total auction costs, even with a negotiated price cap in place that the administration says has saved ratepayers more than $30 billion.

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What the Executive Order Actually Does

Shapiro’s Pennsylvania data center executive order directs several state agencies, most notably the Department of Environmental Protection (DEP) and the Department of Revenue (DOR), to take specific actions. Key provisions include the following:

• Guardrails for permitting: Any data center project with peak demand over 25 megawatts must now follow a new review process. Developers who commit to the GRID Requirements and sign a Consent Order and Agreement with DEP will receive a rolling review of their permits, but only after they demonstrate local zoning and municipal approval. Developers who decline to sign will face a slower, sequential permitting process and will lose access to the state’s expedited PAyback and Permit Decision Guarantee programs.
• Removal from the Fast Track program: Data center projects are no longer eligible for the PA Permit Fast Track Program, which had previously offered an expedited review path for qualifying development.
• Transparency requirements: Non-disclosure agreements will no longer be permitted for data center projects involving agencies under the Governor’s jurisdiction. The DEP will also stand up a public-facing map tracking permitting status for known projects statewide, which it has already done. Operating data centers currently operating in the Commonwealth will be required to file detailed annual energy and water consumption reports beginning July 1, 2027, and every year thereafter by July 1. 
• Ratepayer protections: The order directs the Governor’s Special Counsel for Energy Affordability to work with the Pennsylvania Public Utility Commission on rules that would require data centers to be curtailed before residential and other customers during grid emergencies, and that would ensure data center customers, not the general public, pay for the interconnection and reliability costs their projects create.
• Future rulemaking: DEP is tasked with evaluating whether new regulations are needed for backup generator emissions, and the Department of Community and Economic Development will develop best practices for local zoning and community benefit agreements.

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Reaction From the Legislature

The executive order has already drawn a mixed response in Harrisburg. Senate GOP Majority Leader Joe Pittman, released a statement arguing the order marks a reversal from the Administration’s earlier posture, pointing out that Shapiro had previously championed Pennsylvania’s role in AI development and suggesting the shift reflects, in his words, “how politically intense the proposals have become.” The Senate has not brought GRID-related legislation up for a vote, which Shapiro cited as his reason for acting through executive order rather than waiting on the General Assembly.

House Democratic leaders, by contrast, issued a statement calling the order a “commonsense” step that “will hold data center developers accountable and protect our communities, utility costs and environment.” Separately, some legislators from both parties, along with Republican gubernatorial candidate Stacy Garrity, have called for a moratorium on new data center development in the state.

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What This Means Going Forward

The executive order creates a clear distinction between data center developers that commit to the Commonwealth’s GRID Requirements and those that do not.  Developers that enter into a Consent Order and Agreement and demonstrate local zoning and municipal approval will be eligible for a rolling review of their permit applications. Developers who do not execute such an agreement will be subject to a sequential review process and will not have access to the state’s PAyback or Permit Decision Guarantee programs.

The order also places greater emphasis on local review, including local comprehensive plan consistency and municipal or zoning approval, before the state permitting process begins. Beyond permitting, the order signals additional regulatory action on the costs and reliability impacts associated with data center growth. It directs the Governor’s Special Counsel for Energy Affordability to work with the PUC on rules addressing curtailment priority and cost allocation for data center customers.

DEP and the PUC are expected to begin implementing these directives in the coming months, including development of the template Consent Order and Agreement and any related PUC rulemaking. For developers considering projects in Pennsylvania, the practical effect is a new regulatory framework in which early local approvals and compliance with the GRID Requirements could significantly affect both the timing and process for securing state permits.

The Shapiro Administration also created a form online that allows constituents to share concerns and feedback about any proposed data center developments locally to them. 

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