Pennsylvania has introduced new rules for AI data center development after Governor Josh Shapiro signed Executive Order on August 18. The Pennsylvania AI data center rules take effect immediately: they remove data centers from the state’s PA Permit Fast Track Program, prohibit state agencies under the governor’s jurisdiction from using non-disclosure agreements for data center projects, and require stronger environmental protection and transparency safeguards.
The order comes as Pennsylvania attracts data center investment because of its natural-gas resources, existing power infrastructure, and proximity to major East Coast population centers. It also follows growing public and regulatory scrutiny of the electricity, water, environmental, and community impacts associated with rapidly expanding AI infrastructure, particularly for local communities and Pennsylvanians concerned about energy costs.
For proposed facilities with peak demand above 25 megawatts (MW), the Pennsylvania Department of Environmental Protection (DEP) must establish a new review process tied to the governor’s Responsible Infrastructure Development (GRID) Requirements. Developers seeking that process must notify DEP, meet with the agency, identify the permits they intend to seek, and execute a project-specific Consent Order and Agreement. The process applies to data center developers pursuing new data center development and related project approvals.
Projects that do not execute the agreement face a slower route. DEP will not begin reviewing their applications until local approvals and, where required, water-withdrawal or wastewater-discharge authorizations have been obtained. The agency must also receive and review all necessary applications before issuing permits, adding to the fast-track permitting process concerns raised by local officials and local municipalities.
The state’s GRID Requirements also link large-load development to energy and infrastructure cost allocation. The official guidance says developers must secure incremental capacity and energy sufficient to serve the facility and pay costs caused by the project, including relevant transmission, distribution, network, and interconnection upgrades. This approach is intended to support a reliable energy supply and prevent electricity bills and other energy costs from being shifted to other ratepayers.
The order directs DEP to create a public map with current permitting information for proposed data centers known to DEP or the Department of Revenue. Existing facilities must submit annual energy and water consumption reports beginning July 1, 2027, and every July 1 thereafter. The reports must cover monthly energy use and sources, natural-gas consumption, peak demand, water use, efficiency measures, environmental protections, new power sources, and projected energy and water demand.
DEP is also instructed to examine whether additional rules are needed for backup-generator emissions, cumulative pollution impacts, and situations in which backup generators operate as grid resources. These strict standards place environmental protection and public transparency at the center of the state’s oversight of the data center industry. These requirements sit alongside wider federal attention to the infrastructure needed to support AI: the U.S. Department of Energy’s data center resource hub highlights affordability, grid reliability, water efficiency, and transparent energy data as related policy priorities.
For developers and technology companies, the immediate compliance issue is determining whether a proposed facility exceeds the 25 MW threshold and mapping the project’s local, environmental, water, utility, and tax requirements before filing. Operators should also prepare for more formal evidence of energy sourcing, infrastructure-cost responsibility, and resource consumption. Data center plans may also need to account for community benefit agreements, local zoning restrictions, and potential sales tax exemption requirements.
The development is part of a broader shift from voluntary commitments toward documented governance and assurance. Organizations tracking the wider policy landscape can compare the order with Nemko Digital’s global AI regulations overview, its ISO/IEC 42001 AI management guide, its coverage of AI assurance capability, and its reporting on AI agent standards and governance. Pennsylvania agencies, including commonwealth agencies, are expected to continue developing implementation materials, while municipalities, utilities, developers, and residents will determine how the new requirements operate in practice. Special counsel, industry leaders, and local officials may also monitor proposed legislation, including Senate Bill 939, as Pennsylvania evaluates the economic development and environmental implications of becoming a data center hub.