Shapiro’s data center executive order draws mixed reactions

While some Valley officials are pleased with Gov. Josh Shapiro’s executive order, opponents criticized it.

Gov. Josh Shapiro’s latest move to regulate data center development could give Mon Valley communities more weight in determining what happens in their own backyards.

Shapiro signed an executive order Tuesday that changes how Pennsylvania handles permits and incentives for large data centers, including provisions tying key parts of the state permitting process to local zoning and land-use approvals.

The action comes days after officials in Stockdale, Roscoe, Dunlevy, Allenport, Elco and Coal Center completed a coordinated yearlong pause on data center development while they consider changes to their joint zoning ordinance.

The community leaders are now working to amend their joint zoning ordinance amid concerns surrounding the approximately 400-acre former Wheeling-Pittsburgh Steel mill property, now part of Mon River Industrial Park, which stretches across Allenport, Dunlevy and Stockdale.

EQT holds an option to purchase the property but has not exercised it. The company says it remains in the early stages of evaluating potential development, and no land development or zoning application has been submitted.

“The company is in early days of exploration and if a project were to move forward, EQT is committed to providing notice and commencing engagement with the community to ensure updates are transparently communicated,” EQT said in an Aug. 6 statement.

The six-community pause gives officials time to consider regulations addressing noise, water use, electrical demand, lighting, stormwater and other potential impacts.

Shapiro’s order gives those local decisions greater significance. For data centers with peak electricity demand greater than 25 megawatts, developers that agree to his Responsible Infrastructure Development, or GRID, requirements can have state permits reviewed while local proceedings continue, but DEP cannot issue qualifying permits until required municipal approvals are secured. Developers that don’t agree to GRID must secure local approvals before DEP begins its review.

Stockdale Councilwoman Sherri Martin, who has been involved in the six-community effort, welcomed the action.

“The Executive Order signed today by Gov. Shapiro is a giant step in our fight against EQT coming into our neighborhoods,” Martin said.

But she said residents must remain involved locally.

“It is still up to our residents, to continue our stand locally and ensure local representatives and zoning understand our position,” Martin said. “We don’t want any data center approved in our towns.”

Stockdale Councilwoman Bobbi Schock was more skeptical.

“His order is intended to make people ‘feel’ better,” Schock said. “What does ‘local approval’ mean? Does that mean select local people or does that mean the community at large?”

Schock also questioned how environmental impacts and electricity costs will be tracked.

“He’s trying to serve both by making people feel like he’s doing something to protect us while allowing them in,” she said. “Anything short of a no data center stand is suspect to me.”

Activity surrounding the potential Mon Valley development also continued Wednesday.

EQT held a private luncheon at its Canonsburg headquarters with invited local officials to discuss “proposed economic development in the Mon River Valley area,” while the Center for Coalfield Justice held a public gathering in Stockdale about data center concerns.

Landowners contacted

EQT’s activity has also included outreach to local landowners.

Martin publicly posted a redacted copy of an Aug. 5 letter she said was received by a local resident.

“EQT is actively working with landowners in your area and has partnered with Western Land Services to assist with this project,” the letter states.

The letter says EQT is “evaluating long-term development opportunities in and around the Mon Valley,” but does not identify a specific proposed use.

Martin said she spoke with the recipient, whom she described as a farmer opposed to data center development in the area.

Other Mon Valley communities have already acted. Rostraver, Fallowfield and Carroll townships have adopted varying regulations governing where data centers may locate and standards involving setbacks, noise, water use, screening and other impacts.

What Shapiro’s order does — and doesn’t do

Shapiro’s Executive Order 2026-05, titled “Protecting Pennsylvania Consumers from Data Center Impacts,” took effect immediately Tuesday.

It does not ban data centers, establish a statewide moratorium or, by itself, prohibit a project where one is permitted under local zoning. Instead, it changes how agencies under Shapiro’s control handle data center permits and incentives.

For data centers with peak electricity demand greater than 25 megawatts, developers that commit to GRID can have DEP review permits on a rolling basis, but qualifying permits cannot be issued until required local approvals are secured.

Developers that don’t agree to GRID can still seek permits, but DEP cannot begin its review until local approvals and required water or wastewater authorizations are obtained.

GRID therefore provides a more flexible state review process but does not allow developers to bypass local zoning. The order does not tell municipalities whether to approve or reject a project.

Other provisions

The order removes data centers from Pennsylvania’s PA Permit Fast Track Program and keeps the state’s sales and use tax exemption for qualifying data center equipment, but requires applicants seeking the tax break on or after Aug. 18 to comply with GRID. Fourteen existing or developing data center locations currently have an active certificate of exemption.

It also prohibits agencies under Shapiro’s authority from using nondisclosure agreements in connection with data center projects and directs DEP to create a public map showing permitting information for proposed facilities. The NDA restriction does not apply to private companies or local governments.

Beginning July 1, 2027, operating data centers must annually report electricity and natural gas consumption, peak electricity demand, water use and sources, efficiency and pollution-control measures and projected energy and water needs. The order relies on operators to report that information rather than establishing independent state monitoring.

DEP must also examine whether additional environmental regulations are needed, particularly for backup-generator emissions, while the Department of Community and Economic Development must develop best practices for local zoning and community benefit agreements. The order does not itself impose new emissions standards or require developers to enter into community benefit agreements.

Electricity costs

The order also addresses concerns that data centers’ electricity demands could increase costs or create reliability problems, but Shapiro cannot impose those protections himself.

He directs his Special Counsel for Energy Affordability to advocate before the independent PUC for changes including requiring appropriate data center customers to bear costs associated with their demand rather than shifting them to other ratepayers and subjecting data centers to curtailments before other customers during certain grid emergencies.

Several organizations praised Shapiro’s action while saying additional protections are needed.

The Center for Coalfield Justice, which has been involved in the Mon Valley data center debate, welcomed the greater role for local approvals but criticized the decision to retain the data center sales tax exemption and not require community benefit agreements.

“Keeping the unpopular data center sales tax exemption in place as a negotiating tool allows public money to continue supporting corporate polluters,” CCJ said. “It also encourages developers to offer ‘robust community benefits agreements’ without defining what they must include or requiring them to be signed.”

Pennsylvania Farm Bureau President Tommy Nagle praised the order for addressing concerns about electricity costs, infrastructure, water resources and local input, but said additional protections are needed for farmland.

“We appreciate Gov. Shapiro taking action yesterday to help ensure that farmers and rural communities are not asked to bear the costs of data center development,” Nagle said.

The Farm Bureau also called for safeguards against using eminent domain for transmission lines or other infrastructure primarily serving private data centers.

Conservation Voters of Pennsylvania Executive Director Molly Parzen praised the safeguards but said legislation is still needed.

“However, this Executive Order is only a first step,” Parzen said. “Compared to neighboring states, Pennsylvania is lagging behind.”

Parzen urged lawmakers to enact broader protections, specifically citing House Bill 1834.

Legislative proposals remain pending

Shapiro’s action comes after lawmakers spent much of the session debating data center regulation without sending major legislation to his desk.

The House has approved HB 1834, which would regulate large data centers through the PUC and include ratepayer protections, and HB 2650, which would put GRID standards into law. Both remain in Senate committees.

HB 2496, which would allow municipalities to temporarily pause data center applications while updating land-use rules, passed the House 201-1 and was unanimously advanced by a Senate committee but has not received final Senate passage.

The Senate has also advanced SB 1345, which would allow municipalities to impose moratoriums of up to 18 months on certain high-impact data center applications. SB 991, which proposes accelerated DEP permitting for qualifying projects meeting environmental standards, has not advanced from committee.

None has completed the legislative process.

Political response

Senate Democratic Leader Jay Costa, D-Allegheny, praised Shapiro’s action while accusing Senate Republicans of failing to act on broader data center protections.

“Senate Republicans have abdicated their responsibility to protect ratepayers, deliver local control, safeguard the environment, or listen to Pennsylvanians of every county demanding the legislature’s attention,” Costa said. “Governor Shapiro is stepping up and demonstrating real, commonsense leadership as Senate Republicans fail to engage in this critical conversation.”

Sen. Camera Bartolotta, R-Carroll Township, pushed back, citing SB 1345 and Senate action to eliminate the data center sales tax exemption.

“My priority has always been addressing concerns about proximity to residential neighborhoods, protection of farmland, and compliance with environmental standards,” she said. “More action is needed and I will continue working with local governments to ensure they have the tools and resources they need to make the best decisions for their communities’ future.”

State Rep. Bud Cook, R-West Pike Run Township, also welcomed the emphasis on local control and pointed to his support for HB 2496.

“The bottom line is, this order may be a step in the right direction, but we have more work to do,” Cook said.

“More action is needed and I will continue working with local governments to ensure they have the tools and resources they need to make the best decisions for their communities’ future.”

STATE SEN. CAMERA BARTOLOTTA

R-CARROLL TOWNSHIP