Governor Josh Shapiro unveiled the full Governor’s Responsible Infrastructure Development (GRID) Standards on May 27, establishing Pennsylvania data center standards that will govern how the Commonwealth evaluates and supports large-scale data center projects going forward. First previewed in the Governor’s 2026-27 budget address, the GRID Standards lay out a clear framework: developers who want Pennsylvania’s help, whether through permitting, tax incentives, or other forms of state support, must meet specific requirements across four areas.
What Are the GRID Standards?
The Pennsylvania data center standards operate through a certification process administered together by the Commonwealth’s Office of Transformation and Opportunity (OTO) and the Department of Revenue (DOR). Developers could apply for a GRID Certificate by submitting detailed plans across four areas. If approved, they would unlock access to the PA Permit Fast Track Program, eligibility for sales and use tax exemptions on computer equipment, and participation in preferential tax zone programs. However, certification is not a one-time hurdle. Projects must file a pre-operations compliance report and annual updates to maintain their status.
Energy Costs Stay With the Developer
A central component of the Pennsylvania data center standards is the energy affordability requirement. Developers must cover the full cost of whatever new electricity capacity their project requires, with no cost-shifting to existing ratepayers. That capacity must come from new or incremental generation within the same PJM Locational Deliverability Area as the project. Clean firm energy requirements increase over time, reaching 10 percent by 2027, 14.5 percent by 2030, and 32 percent by 2035. Projects exceeding 100,000 square feet must also be built solar-ready.
Communities Get a Seat at the Table
Transparency and community engagement are built into the Pennsylvania data center standards from the earliest stages of development. Developers must disclose the end users who will occupy the facility, hold public meetings before key design decisions are finalized, and share detailed project footprint information, including building size, water consumption estimates, and efficiency metrics such as Power Usage Effectiveness and Water Usage Effectiveness. Local governments must be notified and consulted at an early enough stage to allow meaningful input on key project decisions.
Real Job and Investment Commitments
The workforce requirements in Pennsylvania’s data center standards establish specific thresholds. Developers must commit to at least $250 million in new investment, at least 200 prevailing-wage construction jobs, and at least 50 permanent positions paying 125 percent of the state’s average wage within 4 years of certification. After that, developers must demonstrate that on-site employees are earning at least $1.5 million in aggregate annual compensation. Hiring plans must also outline how developers will connect local workers to apprenticeship programs and construction opportunities.
Environmental Accountability Is Mandatory
The environmental component of the Governorās proposed Pennsylvania data center standards requires developers to pursue recognized sustainability certifications, such as LEED Gold or higher, EPA Energy Star, GBI Green Globes, or ISO-equivalent standards. Under the standards, backup power systems must rely on zero-emission storage where feasible or, at a minimum, on generators meeting Tier 4 emissions standards. Further, projects near high-quality waterways or ecologically sensitive areas designated under Pennsylvania’s climate connectivity mapping face additional obligations around habitat monitoring and impact mitigation.
A Crowded Legislative Field
As weāve covered before, legislators in Pennsylvania have already introduced or taken action on a myriad of data center legislation.Ā As the Governor announced the Administrationās GRID Standards, several legislators simultaneously introduced bills addressing data center development.
Sen. Tracy Pennycuick, who chairs the Senate Communications and Technology Committee, announced a legislative package that would address similar issues. Her proposals include requiring large data centers to supply their own power, mandating closed-loop water systems using reclaimed or recycled water for facilities consuming 100,000 or more gallons per day, and establishing a Large Load Data Center Tariff through the Pennsylvania Public Utility Commission. The package would also prohibit state and local governments from entering into non-disclosure agreements with data center developers, require at least two public meetings before any zoning decision on a hyperscale project, and create a Pennsylvania Data Center Advisory Committee to monitor the industry for 10 years.
Meanwhile, Sen. Jarrett Coleman and Rep. Jamie Walsh introduced a separate package with a different approach on taxes and local control. Senate Bill 1344 and House Bill 2532 would repeal the Computer Data Center Equipment Exemption enacted in 2021 and redirect that revenue to reduce the Oil Company Franchise Tax. Senate Bill 1345 and House Bill 2533 would allow municipalities to impose an 18-month moratorium on data center applications while they update zoning ordinances and develop community protection policies. We will have a full update on the latest legislation introduced in the General Assembly in a forthcoming post.
The Governor’s Race
State Treasurer Stacy Garrity, the Republican nominee for governor, has called for a moratorium on hyperscale data center projects and said the General Assembly should establish standards to protect local communities.
What Comes Next
The Shapiro Administration is looking to work with lawmakers to codify the GRID Standards into statute. Companion legislation would tie the existing sales and use tax exemption for data center equipment, currently projected to cost the Commonwealth more than $517 million annually by fiscal year 2030-31, directly to GRID certification. The Administration has also pointed to House Bill 1834, passed by the House in late March and sponsored by Representative Rob Matzie, as a legislative foundation for the GRID Standards.
Additionally, a new local government toolkit from the Governor’s Center for Local Government Services will give municipalities practical guidance on evaluating data center proposals, understanding infrastructure impacts, and navigating zoning considerations.
The Bottom Line for Pennsylvania
With the GRID Standards now public, multiple bills circulating in both chambers, and the issue surfacing in the governor’s race, Pennsylvania data center policy is one of the more active areas of the 2026 legislative calendar. For developers, government affairs professionals, and local officials, tracking where each proposal stands will be essential for anyone with a stake in how this industry develops in the Commonwealth.
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