Pennsylvania Tightens Rules for Power Hungry Data Centers

Pennsylvania Governor Josh Shapiro signed an executive order this week that creates new hurdles for large data center projects. Any facility requiring more than 25 megawatts of power must now prove it aligns with local plans and has full municipal approval before the state Department of Environmental Protection will process any permits.

The state has introduced two paths for developers. Those who agree to specific infrastructure standards get a rolling review process. Those who refuse must wait for a full review of all filings and lose access to guaranteed permit turnaround times. Notably, the state has removed all data centers from its Fast Track permitting program.

These changes respond to surging costs for power consumers. Recent data shows that data center capacity charges accounted for nearly half of the total costs in recent PJM Interconnection auctions. With over 100 projects currently proposed in the state, officials want to ensure that infrastructure growth does not unfairly burden local ratepayers.

Pennsylvania is not alone in this push. New York recently paused environmental permits for data centers, and Texas has ordered audits to ensure facilities meet grid requirements. As AI and crypto mining demand for power grows, expect more states to balance industrial expansion with the concerns of local residents.