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Pennsylvania Governor Unveils State Data Center Standards

The Governor’s Responsible Infrastructure Development Standards would, generally, require developers to meet stricter regulations around energy affordability, transparency, community engagement and other areas.

Data Center
(TNS) — Gov. Josh Shapiro traveled to the state’s data center flash point Wednesday to unveil new state standards targeting the industry.

The trip to Northeast Pennsylvania coincided with his administration’s release of the Governor’s Responsible Infrastructure Development, or GRID, Standards that require data center developers to comply with new, stricter standards in order to receive support from the state. GRID’s standards encompass: protecting energy affordability, promoting transparency and community engagement, supporting workforce and economic development, and strengthening environmental protection, according to a news release from the governor’s office.

Shapiro met with local activists and saw firsthand a community park in Archbald near where developers propose 30 data centers and a natural gas power plant. After spending more than an hour meeting with a group of Archbald residents at state Rep. Kyle Mullins’ district office on Main Street in Blakely’s Peckville section, Shapiro met with local media to discuss his rationale for GRID and his experience in Archbald. Mullins, D-112, Blakely, invited him to visit his district and speak with the residents, the governor said.

Northeast Pennsylvania has become a hot spot for speculative data center development, with more than a dozen proposed campuses in Lackawanna County, totaling nearly 100 individual data centers and at least four proposed power plants associated with data center developers. Archbald is ground zero within the local hot spot, having received Lackawanna County’s first informal data center proposal in January 2025. Since then, the borough is navigating proposals for six campuses amounting to 51 data centers and a 400-megawatt natural gas power plant.

The majority of those data centers, and the power plant, fall within a roughly 1-mile stretch of Eynon Jermyn Road, placing them next to Archbald’s Staback Park, near residences and half a mile from the Valley View School District.

Shapiro said he stopped at Staback Park to see it for himself.

“I was standing in left field by that baseball field there … just thinking about what my life has been like as a dad over many, many years, standing on the sidelines of my kids’ baseball games and imagining what it would be like if our kids were trying to play their baseball game in the shadow of a massive data center complex that, quite literally, was just in left field as proposed here,” Shapiro said. “It is clear to me that there are real concerns in the communities all across Pennsylvania, especially here in Archbald, and I want you to know that I have real concerns as well.”

Archbald residents’ grassroots opposition led to the formation of the 12,000-plus-member Stop Archbald Data Centers movement, which has used donations and funds from the sale of anti-data-center signs and T-shirts to fund a legal defense against the industry. On Wednesday, Shapiro said he wanted to speak with the residents on the front lines.

“It was wonderful to hear directly from this community and the people who have been affected,” Shapiro said. “They really helped me understand the issue a little bit better and understand what is needed in order to protect local communities here in Northeastern Pennsylvania and all across our commonwealth.”

Although the program is not mandatory, GRID incentivizes developers with tax benefits and faster permitting.

Failing to participate will make development nearly impossible, Shapiro said.

“If you choose to ignore GRID, you won’t get your tax break, and you won’t get your permits processed in any kind of timely manner,” he said. “That is going to make it a near impossibility for these developers to develop your projects here. So you ignore the administration, you ignore GRID, you do so at your own peril.”

One of the data center industry’s leading advocacy groups quickly criticized Shapiro’s announcement. Representing many of the data center industry’s major players, the Data Center Coalition, or DCC, is a membership association that “empowers and champions the data center community through public policy advocacy, thought leadership, stakeholder outreach, and community engagement.” The organization’s membership roster features household names such as Amazon Web Services, Google, Microsoft, Meta and OpenAI.

“DCC has strong concerns that Governor Shapiro’s GRID proposal creates a complicated framework that would present significant challenges for future development and operation of data centers in the commonwealth. Data centers recognize the importance of responsible development, including thoughtful engagement around energy, water, land use, and community impact,” Vice President of State Policy Dan Diorio said in an emailed statement. “At the same time, it is fair to ask why this industry — which is central to modern life, economic growth, national security, cloud computing, cybersecurity, and our broader digital culture — would be held to a set of standards and requirements that are not similarly applied to other major energy users, large-scale industries, or economic development projects.”

Data center operators are “committed to being good neighbors” in the communities they operate, Diorio said.

“We look forward to continuing to work with Governor Shapiro, legislative leaders, local officials, and community stakeholders to ensure Pennsylvania remains a strong and competitive data center market. It is incumbent upon industry, state and local leadership, residents, and all stakeholders to have fact-based, data-driven conversations to ensure the state can continue to be a leader in digital infrastructure,” he said. “With the right policies in place, Pennsylvania can continue to attract responsible investment while avoiding unnecessary friction, uncertainty or requirements that could impair the competitiveness of developers choosing to invest in the commonwealth.”

After talking with Shapiro, Archbald resident Michael Pilch, a member of Stop Archbald Data Centers who frequently speaks out against the developments at council meetings, said it was very productive.

Notably, residents raised their concerns with Shapiro about the cumulative impacts of data centers, as well as zoning and land use issues with their proximity to homes, parks and schools, he said.

“We greatly appreciate him coming down to (see) the situation we are looking at and facing in Archbald,” Pilch said. “He listened to our concerns, and he discussed some potential ideas that he may have out there regarding legislation.”

According to the governor’s news release on GRID:

A data center developer must demonstrate that proposed projects provide value to local communities, mitigate or offset impacts on Pennsylvanians, and are developed responsibly.

Local leaders as well as organized labor, industry and environmental stakeholders helped develop the standards through their input.

Developers who apply for GRID certification must outline how they will protect energy affordability, promote transparency and community engagement, support the workforce and economic development, and protect the environment.

GRID-certified programs may participate in a permit fast-track program through the Office of Transformation and Opportunity, or OTO.

Developers who receive GRID certification must maintain it and can lose it, along with associated tax benefits, if they fail to meet requirements.

Shapiro’s administration also announced a toolkit to help municipalities navigate data center proposals. The toolkit offers guidance on issues such as zoning, infrastructure capacity, resource use, fiscal impacts and community benefits.

Read the GRID Standards at dced.pa.gov/business-assistance/data-center-resources/grid-standards.

Visit dced.pa.gov/business-assistance/data-center-resources/planning-toolkit to view the toolkit.

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