On August 18, 2026, Gov. Josh Shapiro issued Executive Order 2026-05, “Protecting Pennsylvania Consumers from Data Center Impacts,” imposing a wide range of new requirements on data center development across the Commonwealth. While the executive order does not impose a moratorium on data center development, it introduces additional review requirements that could extend the timeline for obtaining required state authorizations and approvals. Potentially the most impactful of the new requirements is that the Department of Environmental Protection (DEP) will not issue required permits for data centers unless local approvals related to zoning and land developments have been obtained. In municipalities where proposed projects face local opposition, this requirement could increase the influence of local approval processes on whether planned data center projects move forward.
Major elements of the Executive Order include:
- Data center developers will be encouraged to sign consent order and agreements requiring them to comply with the Governor’s Responsible Infrastructure Development (“GRID”) standards, which include requiring developers to 1) build, bring, or buy new power supply to meet data center energy demands; 2) promote transparency; 3) support local workforce and economic development; and 4) develop plans for water and energy conservation.
- Local approvals must first be obtained before DEP will review applications for environmental permits.
- The “GRID” standards include requirements related to energy affordability and environmental protection, including water and energy conservation measures.
- DEP will create a publicly accessible map with pending permitting information and tracking for proposed data centers.
- State agencies will be prohibited from signing non-disclosure agreements with data center developers.
- DEP is directed to develop new regulations related to the cumulative environmental impacts of data centers, including the impact of multiple backup generators.
The Executive Order’s new permitting review procedures apply to permit and authorization applications submitted after August 18, 2026, while existing data center projects will no longer be eligible for the PA Permit Fast Track Program. The Executive Order places increased emphasis on compliance with the GRID Requirements and obtaining local approvals as part of the development process. Legal challenges to parts of the Executive Order may also arise.
If you have questions about navigating the regulatory and permitting issues discussed in this alert, please contact attorney Martin Siegel or any member of Barley Snyder’s Real Estate or Environment & Energy groups.
