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By Melissa Ostroff, Pennsylvania State Field and Policy Manager, and Anaïs Peterson, Petrochemicals Campaigner at Earthworks
On August 18th, Pennsylvania Governor Josh Shapiro announced a new executive order on data centers. This executive order, which the Governor called the strictest data center policy in the country, is a mixed bag that leaves many frontline communities still concerned about what comes next.
Even though it neglects to include the most important policy tool available, a moratorium, this executive order still represents some wins for communities who have been demanding leadership from a Governor who had initially welcomed data centers with open arms. It addresses one of the largest concerns around transparency in data center development as it prohibits the use of non-disclosure agreements, or NDAs, in connection with data center projects. In addition to increasing transparency, the executive order also removes any existing data center projects from permit fast tracking and bars them from eligibility in the future. And while this announcement falls short in many other ways, it shows the power of community organizing across the state to create pressure and deliver results in Harrisburg.
Through the new order, Governor Shapiro also attempts to protect Pennsylvania ratepayers from the utility price hikes often caused by data centers connecting to the grid through a strategy known as bring your own power (BYOP). While BYOP may reduce the impacts of data centers on utility bills, it can also lead tech companies to build their own gas plants to power these projects. This risk is increased by the weak “clean firm” requirements laid out in this executive order.
As part of the requirements, developers would have to source a growing percentage of their energy from “clean firm” resources located within Pennsylvania. But “clean firm” energy isn’t as clean as it sounds. In fact, the category includes nuclear power and fossil fuels paired with carbon capture alongside real renewables like solar, geothermal and hydropower. The mandatory schedule starts small, requiring just 10% clean firm energy. It then climbs to 32% by 2035. The problem is that Pennsylvania already gets 34% of its energy from clean firm sources today. With this context this “requirement” actually falls short of where we already stand.
By labeling fossil fuels as “clean” and setting a target we already passed back in 2025, the Shapiro administration is sending a clear message: pollution is acceptable in Pennsylvania communities. The Shapiro administration cannot trade utility price hikes for environmental pollution and call that a win for Pennsylvania. What Pennsylvanians avoid paying in utility bills they may end up paying in higher health care costs. The fossil fuel infrastructure used to power these projects leads to increased rates of cancer, asthma, cardiovascular disease, and many other deadly and disabling conditions. And pollution has a cost, too – in the form of poor health, rising healthcare bills, and shortened lives. A stronger data center policy would protect Pennsylvanians both from price increases and pollution.
But there is one potential bright spot relative to pollution: Governor Shapiro has directed DEP to develop new regulations around the cumulative environmental impacts of data centers, including the impact of multiple backup generators. We welcome the consideration of cumulative impacts as part of regulations around data centers and other polluting facilities, and look forward to the opportunity for community members and public health experts to speak on this topic.
Governor Shapiro also clarified the role local governments play in data center development, emphasizing that his administration will not consider permits for projects that have not been approved at the local level. We applaud this nod towards community consent, but questions remain about what kind of local opposition will qualify for this protection. People living and working in Pennsylvania know implementation can be complex, and additional clarification is needed to help communities understand how this executive order will impact their own neighborhoods.
This executive order does not address the existing gaps in ordinances and zoning primarily in Pennsylvania’s at-risk rural communities that would empower them to say no to data centers. Local governments are voting to approve data centers simply to avoid lawsuits even when their constituents are showing up and demanding they vote no. Currently approximately 32% of the commonwealth is unzoned leaving them unprotected if and when big tech comes knocking. However, it is unclear from the remarks made by Governor Shapiro and DEP Secretary Shirley if land use permits also fall under this executive order. If they do, a larger portion of the commonwealth may have some protections.
While this executive order makes some much needed progress towards protections it leaves the strongest protective measure still on the table: a moratorium. The call from communities across Pennsylvania has been clear. The best way to protect our commonwealth from the impact of data centers, whether it is rate hikes or increased air pollution, remains a moratorium on data center development.