Governor Josh Shapiro signed Executive Order 2026-05 on August 18, 2026, directing state agencies to enforce new Responsible Infrastructure Development (GRID) requirements for data center projects in Pennsylvania. As reported by dced.pa.gov, the order requires developers to make legally binding commitments before the Department of Environmental Protection (DEP) will evaluate permit applications, aiming to prevent speculative development and increase local community control over industrial siting.
What it means
The executive order removes AI data center proposals from the state’s Fast Track permitting process and prohibits nondisclosure agreements for these projects. The DEP must now incorporate GRID standards—covering energy affordability, workforce development, transparency, and environmental protection—into all permit reviews. Permits will not be issued unless developers secure required local approvals and submit compliant applications that refuse no part of the GRID framework.
For facilities with peak demand exceeding 25 megawatts, the DEP has issued a Template Consent Order and Agreement (CO&A). This legal instrument, grounded in Section 1917-A of the Administrative Code of 1929, imposes operational and environmental conditions on qualifying projects. Developers must demonstrate they will bring, build, or purchase power from new sources to avoid grid strain or ratepayer price increases. Violations of these standards constitute a breach of the consent order. The CO&A also restructures how the DEP evaluates air quality, water discharge, dam safety, and stormwater permits, requiring upfront and annual public reporting to both the DEP and the Department of Revenue.
The state has also released a Data Center Planning Toolkit to assist municipalities and economic developers, alongside an interactive map on pa.gov tracking proposed sites and their permitting statuses. This regulatory shift mirrors broader industrial siting trends where local input and grid stability are prioritized, similar to conditions seen in recent manufacturing expansions like the Hyosung HICO transformer plant investment or the Homanit fiberboard facility, though those projects operated under different regulatory frameworks.
Key facts
- Executive Order 2026-05 signed August 18, 2026
- Applies to all new data center permit applications moving forward
- Removes AI data centers from Fast Track permitting
- Prohibits nondisclosure agreements for data center projects
- Requires legally binding commitments via Consent Order and Agreement (CO&A)
- CO&A template applies to projects with peak demand over 25 megawatts
- Developers must source new power to prevent grid strain or rate increases
- Violations of GRID standards breach the consent order
- Reporting required to DEP and Department of Revenue
- Legal basis: Section 1917-A of the Administrative Code of 1929
Source: Pennsylvania Department of Community & Economic Development (dced.pa.gov)