Pennsylvania Gov. Josh Shapiro recently issued an executive order that requires data center developers to meet a series of requirements addressing energy, environmental, and other concerns to build new projects in the state.

The order created strict requirements regarding energy affordability, community engagement, workforce and economic development, transparency, and environmental protection.

It also gives municipalities greater say over development in their communities, removes all AI data center proposals from the Fast Track permitting process, and prohibits the use of nondisclosure agreements for data center projects.

The requirements stipulate that developers must:

• Pay the full cost of new electricity generation, transmission, distribution, and other infrastructure needed to power their project without shifting costs to Pennsylvania households and businesses
• Commit to open, transparent engagement with local residents and leaders including detailed community outreach plans that include notification to impacted local governments, public meetings, and consultation early enough in the process to allow meaningful public input on major design decisions
• Hire and train local workers and enter into meaningful community benefit agreements that invest in local priorities, from schools and infrastructure to long-term economic development
• Meet the highest standards for environmental protection, including strict water conservation requirements.

In addition, data center operators will be required to submit to the state’s Dept. of Environmental Protection information on energy and water consumption with measurements, including:

• Total energy consumption and total natural gas consumption for the previous calendar year
• Estimated average amount of energy usage per hour during the data center's peak
• Total water consumption for the previous calendar year, along with the maximum day demand
• Any measures taken to protect the environment and public from polluted water or air.