Pennsylvania governor signs order imposing new rules to set up AI data centers in state

The state has become a sought-after location for data centers due to its abundant natural gas from the Marcellus shale basin, existing power infrastructure and proximity to major population centers on the East Coast.

But opposition to the rapid build-out of data centers has steadily grown across the U.S. this year. A June Reuters/Ipsos poll found that only a third of Americans approved of the pace of data center construction, while just 14% supported a data center being built in their community.

Several other states have taken similar measures. New York imposed a one-year moratorium on large new data centers in July, while earlier this month, Texas Governor Greg Abbott also paused approvals for new projects citing concerns that rising electricity demand could threaten reliability.

Amazon last year announced $20 billion in planned investment in Pennsylvania, highlighting the state's appeal as a destination for data center development.

Aug. 18 (Reuters) - Pennsylvania Governor Josh Shapiro on Tuesday signed an executive order that would require companies setting up AI data centers in the state to meet environmental and transparency safeguards and secure local community approval for the projects.

The order, effective immediately, removes all data centers from the state's Fast Track permit program, and bars any office or agency under Shapiro's jurisdiction from signing non-disclosure agreements with data center developers, he said on social media platform X.

"I'm using the full weight of my executive authority to block the objectionable, unwarranted projects and put the nation's strictest set of protections in place."

Shapiro added that the measures are intended to prevent data center projects from driving up utility bills and to protect Pennsylvanians' rights to clean air and water.