Pennsylvania Becomes Latest State to Restrict Data-Center Construction

Dow Jones
Aug 19

Pennsylvania Gov. Josh Shapiro signed an executive order Tuesday placing strict guardrails on new data centers, joining several states that are moving to limit the facilities fueling artificial intelligence's rise.

Shapiro said the order follows reports from Pennsylvanians that a flood of developers have been harassing and strong-arming residents. Prospective builders will have to agree to several requirements to win state approval, the Democrat said, including an energy plan that won't shift costs to Pennsylvania households and securing local buy-in.

"I'm here to say today that we will not be bullied by these developers," the governor said. "We will not be bulldozed by the lawyers for these big tech companies."

Shapiro, a possible 2028 presidential contender, said there are reports of more than 100 data-center proposals under discussion in Pennsylvania, many of which he called "completely speculative." There are no centers currently operating in the state, he said, and only five have the permits they would need to move forward.

Communities across the country have grappled with the rapid spread of data centers, which house the equipment powering AI and computing systems. New York Gov. Kathy Hochul ordered a temporary ban on large data-center construction last month to give the state time to craft proper regulations. Maine Gov. Janet Mills vetoed a bill earlier this year that would have halted new data-center construction.

Supporters of the projects say they will bring in thousands of jobs and potential windfalls for local landowners. Critics of the centers say they consume tremendous amounts of electricity and water, cause noise and air pollution and won't deliver on promised local benefits.

Dozens of cities and counties have temporarily paused new construction, and many states are weighing similar bans.

 

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