Pennsylvania Tightens Oversight of Large AI Data Centers

Pennsylvania has emerged as a major destination for data centers as artificial intelligence drives demand for computing capacity and electricity. Amazon pledged $20 billion in 2025 to build AI campuses in the state, underscoring the investment at stake. But residents and local officials have raised concerns over higher utility bills, water use, grid upgrades and opaque development agreements, pushing the state to balance technology investment with consumer and environmental protections.

Governor Josh Shapiro signed Executive Order 2026-05 on Aug. 18, 2026, covering AI data centers with peak demand above 25 megawatts. Developers must secure local approval, make legally binding commitments to the Governor’s Responsible Infrastructure Development standards and pay for new generation and grid costs attributable to their projects. The order removes data centers from Pennsylvania’s Permit Fast Track Program and bars state agencies from signing nondisclosure agreements. Of more than 100 proposals statewide, only five have the permits needed to begin operating. Existing facilities must report annual energy and water use starting in July 2027.