Gov. Josh Shapiro signed an executive order Tuesday to force data center developers to comply with new planning and operating standards he unveiled in May, despite lacking a law imposing standards.
In a speech in Harrisburg streamed online, Shapiro outlined an order meant to force center developers to go through the state Department of Environmental Protection to get projects approved.
Shapiro highlighted the plight of residents fighting proposed data centers in Archbald in Lackawanna County and in Montgomery County, where he once served as a county commissioner.
The governor, who visited Archbald in late May, said he heard the concerns of residents there and elsewhere. He labeled many prospective data center developers as “speculators ... scaring our communities – being aggressive with township officials, bullying our neighbors, and refusing to listen to the people of Pennsylvania.”
“I’ve heard loud and clear from the people of Pennsylvania as I’ve traveled our Commonwealth, and I’m here to say that we will not be bullied by developers and bulldozed by the lawyers working for these big tech companies,” Shapiro said. “We have a long history in Pennsylvania of industry running roughshod over our communities to make a buck – that stops with me.”
State Rep. Kyle Mullins, a Democrat whose district includes Archbald, said the "strong and robust" executive order is proof that the governor’s visit to the borough and what he’s heard from Pennsylvanian’s around the state stuck with him.
He said the data center industry is out of control and the executive order gives local communities more authority.
“No town or valley or county or region should be expected to accept the overwhelming and all-out assault from an industry that we have here in my district and in the surrounding areas,” he said. “No area should have to feel as if they are ground zero for corporate and industrial overreach.”
What the order says
Under the order, which may face legal challenges, Shapiro said data center developers would have to:
- Provide a notice of intent to comply with GRID standards. GRID stands for Governor’s Responsible Infrastructure Development.
- Present detailed plans to the Department of Environment Protection, which would “scrutinize them to ensure they’re sufficient.”
- "Sign a legally binding consent order locking them into the GRID requirements and setting penalties if they fail to comply.”
“This executive order represents the most stringent requirements in the entire country, and my word to developers is: you better follow these requirements,” Shapiro told reporters on a livestream after signing the order. “Otherwise, you shouldn't plan to do business here.”
House passed standards, not Senate
The state House, where Democrats have only a one-member advantage, passed the standards with bipartisan support, 134-68, adopt Shapiro’s standards on June 24, but the state Senate hasn’t voted on the bill, a fact Shapiro noted.
Mullins said state Senate Republicans "languishing" on the standards are one of the reasons for Shapiro's move.
“An executive order was absolutely needed before we got any further along … for any more data center applications or developers to try to rush in and take advantage of our communities,” Mullins said. “I'm not against progress. I'm not against responsible industrial development, but … nothing about how this industry as a whole has treated Lackawanna County and many places throughout this state has been responsible or respectful.”
Among other things, Shapiro’s GRID standards would require data center developers to be transparent about their plans and hold public meetings and consult with local leaders early on; meet at least minimum requirements for investment and jobs; provide plans for deploying “advanced technology to limit water and energy consumption ... through certifications; and commit to minimizing air pollution.
Shapiro pointed to two data center projects that he announced last summer during a stop in Berwick in Columbia County. The proposed Amazon Web Service centers would bring thousands of new jobs and $20 billion in new investment to Salem Township, Luzerne County, and Falls Township, Bucks County.
“Since then, we’ve seen an unacceptable number of speculative proposals for data centers swamp our Commonwealth – many of them led by developers who have no regard for local communities,” he said.
Shapiro said only five of the “more than 100 data center proposals under discussion” have the permits necessary to operate.
“Most of those proposals are completely speculative, and many of them haven’t taken any formal steps to apply to the Commonwealth and will never be built,” he said. “They lack detailed plans, have insufficient financing, don’t have access to the electricity they actually need to build these centers, and have no agreement with a tech company to use the space once its built.”
In Northeast and Northcentral Pennsylvania, there are at least 30 proposals.
Shapiro said he’s also:
Immediately removing all data current centers from a fast-track permitting program and blocking future proposals from the program, too.
“It’s not right for this kind of development,” he said.
Forbidding developers from employing non-disclosure agreements that allow secrecy in who will operate a center and other information.
“It is important that developers understand they need to be open on every detail with the community,” he said. “And if they won’t be, they’re not welcome to do business in Pennsylvania.”
- Directed his new special counsel on energy affordability, Patrick Cicero, to work with the state Public Utility Commission “to ensure that any infrastructure costs caused by data centers are paid by the AI data centers.”
Locals skeptical
Tamara Misewicz-Healey, a co-founder of the Stop Archbald Data Center group, said the governor still isn’t listening.
“We want a moratorium, and I'm not sure how many times we could say that. And if he's interested in why, we can explain that in very, you know, thorough detail.”
The Lackawanna County borough has six proposed data centers with the possibility of a seventh.
Misewicz-Healey called the executive order a “sales pitch.” She said Shapiro should have held a public forum to hear what Pennsylvanians want when it comes to the data center industry.
“What I feel like he did today was selfishly do what he wants and what he thinks is right, and just push it down our throats, and then say that these are protective guardrails,” she said. “Whereas when I read this, there is nothing within it that gives me comfort or protection.”
A skeptical Colby Wesner, who’s with the Concerned Citizens of Montour County, said he likes to give people the benefit of the doubt.
In the spring, Wesner's group released emails, acquired through the state's Right to Know law, showing state officials speaking with industry professionals ahead of Shapiro’s budget address detailing the GRID standards.
“GRID and his budget address sounded pretty tough and strong, but then we recovered emails that showed that … his administration was emailing Amazon ahead of time, and the Data Center Coalition asking for input on GRID, and telling them that GRID was optional and meant to be voluntary.”
He said for an everyday Pennsylvanian, Shapiro’s executive order might seem like a hard stance against the data center industry.
“I'm just wondering what has already potentially been said ahead of this announcement, or what has already been done to maybe assuage some developers' fears.”
Wesner said Shapiro’s should apologize to the communities that are battling the industry.
"I have no doubts whatsoever that his administration is solely responsible for how we've gotten bombarded by this,” he said.
Wesner said maybe the executive order is his way to right a wrong.
"That would be heartwarming knowing that government, at that level, does listen to the massive amount of opposition to their constituents … That's how democracy is supposed to work.”
Reaction splits along party lines
State Sen. Democratic Leader Jay Costa credited Shapiro for "stepping up and demonstrating real, commonsense leadership as Senate Republicans fail to engage in this critical conversation.”
In their own statement, House Democratic leaders said Shapiro was “taking strong, meaningful and comprehensive action” and “putting Pennsylvanians first.”
State Sen. Majority Leader Joe Pittman, a Republican, said Shapiro "aimed at erasing his remarks from last year " and has "become over his previous record of embracing data centers, only to find out how politically intense the proposals have become. "
"He's not seriously engaged on this issue, other than what we have seen on his data center-driven social media," Pittman said. “The issue of data center development has no doubt taken a center stage here in Pennsylvania. We want all residents to have their voices heard when it comes to this important issue. As our world continues to embrace greater access to technological advancements, the issues of energy development and national security also go hand in hand. Together, I am confident we can work to safeguard our communities, foster economic growth, and build a stronger Pennsylvania for future generations to come.”
Efforts to obtain comment from House Republican Leader Jesse Topper were not immediately successful.
In a statement her governor campaign issued, State Treasurer Stacy Garrity condemned Shapiro for “trying to gaslight” Pennsylvanians.
“Last summer, Josh Shapiro was the biggest data center cheerleader in the nation, and he reaped in more than $5 million in campaign donations from out-of-state data center interests in the process,” Garrity said. “Now that public opinion has turned against him and his donors, Josh Shapiro is playing CYA, and Pennsylvania voters aren’t buying it.”
