Shapiro seeks stricter standards for data center growth in Pa.

Proposed data centers are drawing debate across Pennsylvania as Gov. Josh Shapiro pushes for stricter expectations on how they’re built and powered in his 2026 budget proposal. Shapiro said the industry’s rapid expansion requires new ground rules before projects move forward.“When it comes to innovation, no sector of our country’s economy is growing faster than data centers and artificial intelligence,” said Shapiro.In the governor’s proposal, Shapiro laid out “GRID,” short for the Governor’s Responsible Infrastructure Development standards.The framework sets four principles that data centers would need to meet to build in PennsylvaniaThe first standard would require companies to build or fully fund their own power sources while also preserving water. Second, the proposal also calls for transparency with the communities where projects are planned.A third principle would require hiring local Pennsylvania workers.The fourth would require meeting commonwealth standards to qualify for faster permitting.“This is uncharted territory. So, let’s come together,” said Shapiro.Bipartisan approachDemocratic leaders signaled support, arguing the plan would steer development toward projects that don’t strain public resources. Pa. House Majority Leader Matthew Bradford said the standards are meant to shape growth rather than stop it.“It’s going to incentivize the right kind of data center growth,” said Bradford. “If they’re going to come to Pennsylvania, they’re going to have to bring their energy and they’re going to have to pay for it.”Republicans said it’s reasonable for companies to cover the energy costs tied to their projects but questioned whether the governor can put the standards in place without legislative action. Pa. Senate Majority Floor Leader Joe Pittman said any policy has to start with the realities of the electric grid.“The conversation has to be rooted in the fundamentals that affordability and availability of electricity go hand in hand,” said Pittman. “The notion that data centers should bring their own supply to the market seems to make a lot of sense.” Shapiro also pointed to the fast growth of data centers and artificial intelligence in Pennsylvania as a reason to move quickly. He said his budget proposal includes protections for children from AI, including guardrails involving sexually explicit content and AI-generated medical advice.

HARRISBURG, Pa. —

Proposed data centers are drawing debate across Pennsylvania as Gov. Josh Shapiro pushes for stricter expectations on how they’re built and powered in his 2026 budget proposal. Shapiro said the industry’s rapid expansion requires new ground rules before projects move forward.

“When it comes to innovation, no sector of our country’s economy is growing faster than data centers and artificial intelligence,” said Shapiro.

In the governor’s proposal, Shapiro laid out “GRID,” short for the Governor’s Responsible Infrastructure Development standards.

The framework sets four principles that data centers would need to meet to build in PennsylvaniaThe first standard would require companies to build or fully fund their own power sources while also preserving water. Second, the proposal also calls for transparency with the communities where projects are planned.A third principle would require hiring local Pennsylvania workers.The fourth would require meeting commonwealth standards to qualify for faster permitting.

“This is uncharted territory. So, let’s come together,” said Shapiro.

Bipartisan approach

Democratic leaders signaled support, arguing the plan would steer development toward projects that don’t strain public resources. Pa. House Majority Leader Matthew Bradford said the standards are meant to shape growth rather than stop it.

“It’s going to incentivize the right kind of data center growth,” said Bradford. “If they’re going to come to Pennsylvania, they’re going to have to bring their energy and they’re going to have to pay for it.”

Republicans said it’s reasonable for companies to cover the energy costs tied to their projects but questioned whether the governor can put the standards in place without legislative action. Pa. Senate Majority Floor Leader Joe Pittman said any policy has to start with the realities of the electric grid.

“The conversation has to be rooted in the fundamentals that affordability and availability of electricity go hand in hand,” said Pittman. “The notion that data centers should bring their own supply to the market seems to make a lot of sense.”

Shapiro also pointed to the fast growth of data centers and artificial intelligence in Pennsylvania as a reason to move quickly. He said his budget proposal includes protections for children from AI, including guardrails involving sexually explicit content and AI-generated medical advice.