Executive Summary:
On August 18, 2026, Pennsylvania Governor, Josh Shapiro signed an Executive Order titled “Protecting Pennsylvania Consumers from Data Center Impacts”. This Executive Order implements the Governor’s Responsible Infrastructure Development (GRID) Plan, which sets limitations and requirements for Data Centers looking to operate in Pennsylvania.
Pennsylvania Governor’s Responsible Infrastructure Development (GRID) Plan for AI Data Center Development:
On August 18, 2026, Pennsylvania Governor, Josh Shapiro signed an Executive Order titled “Protecting Pennsylvania Consumers from Data Center Impacts” (Executive Order 2026-05). This Executive Order implements the Governor’s Responsible Infrastructure Development (GRID) Plan, which sets limitations and requirements for Data Centers looking to operate in Pennsylvania. GRID was issued in response to the increase of proposed Data Centers in Pennsylvania.
The GRID Plan outlines the following requirements and restrictions on Data Centers in Pennsylvania:
- Directs the Pennsylvania Department of Environmental Protection (PADEP) to establish a review process for any Data Center with peak demand over 25 megawatts (MW).
- Applicants certifying under GRID Requirements must execute a project-specific Consent Order and Agreement based on a template agreement. The Consent Order and Agreement will include stipulated civil penalties for failure to meet the agreement’s requirements.
- The use of non-disclosure agreements in connection with Data Center projects is prohibited.
- Developers must provide their own power, which must be physically deliverable to the PJM Interconnection area where the Data Center is located. The developer must also submit documentation to PADEP indicating that the secured capacity meets peak demand and total annual energy consumption.
- Developers must use an increasing percentage of dispatchable, clean firm energy resources located in Pennsylvania. This agreement will have a target scaling schedule (ranging from 10% in 2027 to 32% by 2035).
- Developers will pay 100% of the energy costs caused in-whole or in-part by their projects. This includes the following.
- Funding the incremental power generation needed for their facilities
- Paying costs related to transmission, interconnection, distribution, and grid upgrades caused by their load
- Demonstrating how their power demand will not increase costs for other utility customers.
- Data centers will be required to report energy usage, water consumption, and sales tax exemption verification data annually.
- Data centers must implement water conservation measures where it is feasible to minimize effects on municipal systems and aquifers.
- Back-up diesel or natural gas generators will be subject to strict emission limits including zero-emission energy systems where possible (i.e., battery systems) and backup generators meeting Tier 4 or Tier 4 equivalent standards.
- If the data center is located in a Pennsylvania designated Environmental Justice (EJ) area, projects will be subject to enhanced public participation and community benefit agreements with the municipality and county to ensure heightened pollution-mitigation measures, enhanced air/water monitoring, and local community health.
- Developers will be required to participate in enhanced community engagement, similar to the expectations under Pennsylvania’s current EJ Policy. This includes the following.
- Notifying local governments;
- Holding accessible public meetings;
- Providing/Presenting detailed information on power use, water consumption, facility size, and environmental impact; and
- Engaging communities early in the project lifecycle.
- Developers must commit to significant levels of monetary investment and job creation (both construction and permanent). Each developer must commit to:
- At least $250 million in investment;
- At least 200 prevailing-wage construction jobs;
- At least 50 permanent jobs (paying at least 125% of Pennsylvania’s average statewide wage); and
- Workforce training and community benefit agreements.
Additionally, the executive order makes any future data center project ineligible for the Office of Transformation and Opportunity (OTO) Pennsylvania Fast Track permitting program. Therefore, there will be no preferential treatment from PADEP to coordinate permitting efforts for developers.
For projects that qualify under GRID, PADEP will review permit applications as they are submitted; however, the Department will not issue any permits unless the project has received all required local approvals. For projects which do not meet GRID requirements, PADEP will not begin reviewing the permit applications until all required local approvals are secured and every permit application required for construction of the data center has been reviewed and found to be compliant by the Department.
If you would like to discuss the Executive Order and/or the GRID Plan and how it may impact your facility, please contact Trinity’s Philadelphia Office or Pittsburgh Office.
