Pennsylvania Just Added One Gate That Every Data Center Developer Has to Clear

Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05 on August 18, changing the way the state reviews permits for data centers with peak demand exceeding 25 MW.

The order takes effect immediately and creates two review tracks, depending on whether a developer signs a binding agreement with state regulators.

How Pennsylvania Will Review Data Center Permits

Developers who commit to the Governor’s Responsible Infrastructure Development requirements can sign a consent order with the Department of Environmental Protection. Those developers receive a rolling review of their applications.

Developers who decline wait until every application is filed and reviewed. They also lose access to two state programs that guarantee permit turnaround times.

Both tracks share one gate. DEP cannot issue permits, or for non-signers begin review, until a developer shows the project matches the local comprehensive plan and holds all municipal approvals.

The order also removes every data center from the Fast Track permitting program.

“…if the local community doesn’t approve a project, the state won’t approve it either,” Governor Shapiro said.

The order cites reports of more than 100 proposed facilities statewide. DEP has received permit applications tied to 20 facilities.

Cost pressure sits behind the move. Data centers drove $29.4 billion in capacity charges to ratepayers across PJM Interconnection’s last four base residual auctions, or 46% of total auction costs, according to the PJM Independent Market Monitor. PJM serves all or parts of 13 states and Washington, DC.

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State Backlash Spreads Against AI Data Centers

Pennsylvania joins a widening group. In July, New York’s Governor paused state environmental permit issuance for up to 1 year.

Texas subsequently ordered an audit of all data centers, with projects failing to meet the requirements set by the PUCT and ERCOT barred from connecting to the state’s power grid.

The growing scrutiny extends beyond regulators. Communities and the wider public have also raised concerns about the rapid expansion of AI data centers.

Gallup found that 70% of Americans oppose having an AI data center built near where they live. On July 18, a national day of protest against data centers saw 142 demonstrations across 42 states.

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