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Gov. Josh Shapiro on Tuesday proposed a new framework of strict standards for data center developers.
The outline from the governor, who is widely considered a 2028 presidential contender, is attempting to balance the artificial intelligence-fueled technology boom with mounting anxiety from residents over rising electricity bills and environmental protections.
During the Tuesday 2026-2027 budget address in Harrisburg, the Democratic governor introduced the “Governor’s Responsible Infrastructure Development” standards.
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The criteria would require developers to meet specific benchmarks to qualify for state resources and expedited construction, according to the remarks.
Shapiro called on the General Assembly to codify the standards into law.
The governor acknowledging that many residents feel uneasy about the rapid expansion of the power-hungry facilities.
“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 said. “And so do I.”
The proposal requires developers to pay for their own power generation or cover the costs of new generation to ensure residents and local businesses are not burdened with higher utility rates.
In addition, the standards mandate local hiring, community benefit agreements, transparency in development plans, and water conservation.
Shapiro said that companies adhering to these rules would receive “speed and certainty” in permitting and access to tax credits.
The push comes as Amazon Web Services moves forward with a $20 billion plan to build two campuses in the state, including a project in Falls Township and another in Luzerne County.
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While the administration says the projects will create thousands of construction jobs, specific permanent employment figures have not been released by Amazon or the governor.
The buildout of data centers in the state has faced sharp criticism from advocacy groups.
Megan McDonough, Pennsylvania state director for Food and Water Watch, called the governor’s focus on both affordability and data centers “outlandishly paradoxical.”
“If affordability is truly a priority for the governor and the legislature, data centers cannot be a part of the conversation,” McDonough said.
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The group is seeking a national moratorium on data center projects.
Despite pushback, the race for artificial intelligence infrastructure has found support across the aisle, including from Republican U.S. Sen. Dave McCormick.
Shapiro has framed the issue as a matter of innovation, national security, and economic competition.
“The United States is locked in a battle for AI supremacy against China,” Shapiro said. “I’d much rather the future be controlled by the United States of America, and not communist China.”
The governor recently joined several other state leaders in backing a plan from President Donald Trump’s administration to slow the rise of regional electric prices.
Shapiro noted that while the state aims to be a leader in innovation, it must be “selective about the projects that get built here.”
The massive Amazon campus is being constructed on at the former U.S. Steel site where NorthPoint Development is creating one of the largest logistics hubs on the East Coast.
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