Pennsylvania Gov. Josh Shapiro, a potential 2028 presidential contender, will unveil a set of state guidelines Tuesday for dealing with the explosive growth of data centers as he wades further into an issue that is playing a growing role in politics and election campaigns.
In his annual budget address, Shapiro will introduce what he’s calling the “Governor’s Responsible Infrastructure Development” Standards — a set of criteria for data center developers to qualify for resources the state can provide to encourage and hasten their construction. He will also call for the divided Legislature to codify them into law.
“I know Pennsylvanians have real concerns about these data centers and the impact they could have on our communities, our utility bills, and our environment,” Shapiro will say, according to his prepared remarks. “And so do I.”
The objective, he adds, is “to hold data center developers accountable to strict standards if they want our full support.”
Shapiro will call on data center developers to commit to pay for their own power, hire locally, be transparent with Pennsylvania communities and adhere to high water-conservation standards.
“First, developers must commit to bringing their own power generation — or paying entirely for the new generation they’ll need and not saddling homeowners and businesses with added costs because of their development,” Shapiro’s remarks read. “Second, developers must commit to strict transparency standards and direct community engagement. Too many of these projects have been shrouded in secrecy, with local communities left in the dark about who is coming in and what they’re building. That needs to change.
“Third, these projects need to hire and train local workers,” the remarks continue. “They need to enter into community benefit agreements that fund important local priorities and support the towns that host them. And fourth, they must commit to the highest standards of environmental protection, especially water conservation.”
Shapiro will say that so long as data center developers do that, they will have “speed and certainty in permitting and available tax credits.”
“I know everyone in this room wants to see our economy grow and create more jobs and more opportunity. But I also know this is uncharted territory,” the remarks continue, adding: “So let’s come together, codify these principles, and take advantage of this opportunity. We can play a leading role in winning the battle for AI supremacy — but we have to do it in a way that puts the good people of Pennsylvania first.”
Rapid advancements in artificial intelligence and data center development are quickly becoming political wedge issues that leaders in both parties are scrambling to navigate ahead of the midterms and the next presidential election. Nationally and in Pennsylvania, some residents are pushing back against the data center buildout, worried about electricity bill increases tied to the power-hungry operations and environmental concerns, among other issues.
In Pennsylvania, where leaders on both sides of the aisle have encouraged AI industry investment, including Shapiro and Republican Sen. Dave McCormick, the data center footprint is quickly expanding.
In a tele-town hall last week, McCormick said he believes data centers are “a huge driver of economic growth” but acknowledged that residents have “a lot of questions” about their rapid proliferation.
“Every community needs to be engaged in a way where they get to decide,” McCormick said. “This shouldn’t be pushed on them. … And I think there should be a covenant, a basic understanding between communities and these builders, how the community is going to benefit.”
Last month, Shapiro, Maryland Gov. Wes Moore — another possible 2028 candidate — and nearly a dozen other governors from states served by the electric grid operator PJM Interconnection backed a Trump administration plan to slow the rise in electricity prices in the region. Shapiro and Moore visited with top Trump administration officials and signed a statement of principles to that effect.
“We’ve seen how much interest there is in Pennsylvania from developers,” a senior Shapiro aide said of what’s driving his proposal. “And I think you’ve also seen folks in local communities be skeptical, to say the least, especially in northeast PA.”
“And so the hope is that we can provide some guardrails and that that can both be a signal to the industry that ‘hey, they’ve got to be good corporate stewards here’ and also a signal to local communities that we have the ability to help you figure out which of these projects might be a good fit,” this person continued.
State and federal officials are finding their footing on data center development and AI broadly. On the left, Sen. Bernie Sanders, I-Vt., proposed a moratorium on data center construction late last year. Sen. Chris Van Hollen, D-Md., introduced a bill last month to require corporations to foot the bill for electricity bill increases tied to data center power usage. And Democratic governors in Oregon and Washington have formed advisory committees on data centers.
“When it comes to innovation, no sector of our country’s economy is growing faster than data centers and artificial intelligence,” Shapiro will say, according to his prepared remarks. “The United States is locked in a battle for AI supremacy against China. I don’t know about you, but I’d much rather the future be controlled by the United States of America, and not communist China.”
“Pennsylvania is well-positioned to play a leading role in that effort,” he will add, touting programs at Carnegie Mellon University and the University of Pennsylvania. “At the same time, we need to be selective about the projects that get built here.”
