The order eliminates fast-tracked data center permit approvals, a key provision outlined in his budget address that applied to those who agreed to abide by the Governor’s Responsible Infrastructure Development, or GRID, standards. Data center developers are now required to implement the GRID standards, which were passed by the state House but stalled in the Senate. Developers will have to sign a consent order agreeing to the GRID terms, and could face penalties if they fail to comply.
Data center plans, including water usage and any resulting pollution, will also have to be permitted by the Pennsylvania Department of Environmental Protection. The order also instructs the DEP to create new regulations limiting data center pollution.
In addition to increasing global-warming carbon emissions, data centers that use natural gas and diesel engines impact local air quality. They can also use significant water to cool the servers, which has dried up residential wells in some parts of the country.
One of the requirements of GRID is that data centers will also have to “bring their own power” and not rely on the region’s electrical grid. Centers will also have to commit to provide 32% renewables by 2035.
“They must get an increasingly significant portion of that power from clean energy sources like solar, advanced nuclear and battery storage,” Shapiro said.
Speculative data center development has helped drive up the costs of electricity bills, according to PJM Interconnection, the region’s grid operator. That’s because PJM has to plan for future demand by holding auctions to ensure a reliable supply. If data center developers report a high demand for power, but are never built, that can artificially drive up the cost of electricity supply for everyone.
New data centers planned for the regional grid, which includes 13 states and the District of Columbia, make up 94% of new energy demand for the next four years, according to PJM.
“No one’s utility bill should go up because these wealthy companies don’t pay their fair share,” Shapiro said. “They should pay for every penny of electricity that they need.”
Some speculate that the extra load by data centers could result in rolling blackouts. But Shapiro said if a shortage occurs, data centers that are attached to the grid will have to go offline.
PJM Interconnection has a proposal to federal regulators that would also have the data centers that don’t bring their own power be subject to shutting down on days when there’s a shortage of electricity.
Under Shapiro’s executive order, developers will also have to pay for any infrastructure upgrades to the grid, rather than socializing those costs among all ratepayers, which is the current practice.
“What we’re seeing today is a compounding threat,” said Patrick Cicero, an attorney with the Pennsylvania Utility Law Project, which works to protect low-income ratepayers. “Rising energy bills driven by data center load growth and a regulatory system that cannot move fast, but for too long has also been tilted against communities and consumers.”
Cicero, who spoke at the governor’s press conference, said that in 2025, almost 290,000 Pennsylvania residents had their electricity shut off for nonpayment.
“That is a 14% increase over 2024,” he said. “We cannot have a system where billion-dollar companies get economic windfalls and a grandmother in Pennsylvania gets stuck paying the electricity bill.”
Cicero said he wants to see the Public Utility Commission require data centers pay into the fund that helps keep the lights on for low-income families.
The order also gives priority to local authorities, blocking any state approvals if the developers fail to get approval from communities. If local municipalities do approve of the projects, the developers must negotiate a community benefits agreement.
“These are the wealthiest companies in the world, they shouldn’t get a tax break for gouging our communities,” Shapiro said.
Shapiro also touted the state’s Environmental Rights Amendment in his remarks, which guarantees clean air and clean water to all residents under the state constitution.