Pennsylvania governor signs order imposing new rules to set up AI data centers in state

Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday aimed at establishing new rules for the establishment of AI data centers within the state. The order requires these companies to adhere to environmental standards and transparency protocols, as well as obtain community consent for such projects. The state has gained prominence as a potential location for data centers due to its extensive natural gas resources from the Marcellus shale basin, existing power infrastructure, and strategic location near major East Coast population centers.

However, the demand for data centers has faced increasing opposition nationwide, with a June Reuters/Ipsos poll revealing that only 33% of Americans supported the current pace of data center construction, and just 14% approved of a data center being built in their community. The new order, effective immediately, removes all data centers from the state's Fast Track permit program and prohibits any state office or agency under Shapiro's jurisdiction from signing non-disclosure agreements with data center developers.

Governor Shapiro emphasized that the measures are designed to prevent data center projects from causing utility bill increases and to safeguard Pennsylvanians' rights to clean air and water. Notably, Amazon announced in 2022 an investment of $20 billion in Pennsylvania, underscoring the state's popularity as a destination for data center development.