• Governor Josh Shapiro has ordered new Pennsylvania data-centre proposals to meet binding GRID requirements covering power costs, environmental protection and community engagement
  • Data centres have also been removed from the state's Fast Track permitting programme, while access to an equipment tax exemption will depend on GRID compliance

The fact

Pennsylvania Governor Josh Shapiro has signed an executive order tightening the approval process for new data-centre projects by linking state permitting to his Governor's Responsible Infrastructure Development, or GRID, requirements.

Developers that want their permit applications reviewed under the new process must attend a pre-application meeting with the Department of Environmental Protection and sign a legally binding consent order committing them to the GRID standards. The requirements include paying the full cost of new power infrastructure needed for a project, protecting water and the environment, engaging local communities and investing in local workers and economic development.

The state will not issue permits until required local approvals have been secured. Data centres have also been removed from Pennsylvania's Fast Track permitting programme, while the state plans to require GRID compliance for access to its existing computer data-centre equipment tax exemption. The new process applies to new permit applications going forward.

The assessment

Pennsylvania is moving several decisions that could shape a data-centre project earlier in the development process. Developers that sign the GRID consent order can move through state permitting, but required local approvals must still be secured before state permits are issued. Compliance will also determine access to the existing equipment tax exemption.

That means questions around power-infrastructure costs, community commitments, and environmental requirements need to be addressed sooner, rather than left to separate negotiations later in permitting. The change does not guarantee faster approvals, and it remains unclear whether the new requirements will force developers to alter sites, schedules or project economics.

For BTW readers, the first projects to move through this system will show how much the order changes delivery in practice. Signed GRID agreements, local approvals and subsequent DEP permits will provide the clearest evidence of whether projects can meet the new conditions without major redesigns or delays.

What to Watch

Watch which developers sign GRID consent orders and whether those projects then secure local approval and DEP permits. Pennsylvania's updated tax-exemption guidance should clarify how compliance affects project costs, while the first permits issued under the executive order will show how the requirements are being applied in practice.