Pennsylvania is moving to tighten oversight of AI data center development as demand for large-scale computing sites grows across the East Coast. Governor Josh Shapiro signs an executive order requiring environmental and transparency safeguards, as well as local community approval, for companies seeking to build the facilities in the state.
Highlights
- Pennsylvania's executive order removes all data centers from the Fast Track permit program and bans NDAs between agencies and developers effective immediately.
- Governor Shapiro claims the measures impose the nation's strictest protections to prevent rising utility bills and safeguard clean air and water rights.
- Despite increased regulatory scrutiny, Amazon has announced a $20 billion investment in Pennsylvania, reflecting continued demand for the state's data center market.
Executive order reshapes project approvals
As reported by Reuters, the order takes effect immediately and removes all data centers from Pennsylvania's Fast Track permit program. It also bars any office or agency under Shapiro's jurisdiction from signing non-disclosure agreements with data center developers, according to the governor's post on X.Shapiro says he is using the full scope of his executive authority to block what he describes as objectionable and unwarranted projects, while putting in place what he calls the nation's strictest protections. He adds that the measures are meant to stop projects from pushing up utility bills and to protect residents' rights to clean air and water.
State appeal meets rising public resistance
Pennsylvania has become an attractive market for data center development because of abundant natural gas from the Marcellus shale basin, existing power infrastructure and proximity to major population centers on the East Coast.At the same time, opposition to the rapid expansion of data centers is growing across the U.S. this year. A June Reuters/Ipsos poll finds that only a third of Americans approve of the pace of data center construction, while just 14% support a data center being built in their own community.
Amazon has announced plans to invest $20 billion in Pennsylvania, underscoring the state's significance as a destination for data center projects even as regulatory scrutiny increases.
Our earlier article on the growing U.S. backlash against AI highlighted deepening public distrust in how companies use the technology, alongside rising opposition to local data centers over water use and electricity costs. We noted that these concerns are reshaping the political debate as tech leaders warn about AI risks even while pushing rapid expansion, adding pressure for tougher rules and clearer safeguards.
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