Pennsylvania Unveils New Data Center Development Standards
Pennsylvania Governor Josh Shapiro will introduce new state guidelines for data center development, to be known as the "Governor's Responsible Infrastructure Development" Standards. These guidelines are slated for unveiling during his annual budget address. Shapiro also intends to call on the state Legislature to codify these standards into law.
Purpose of the Standards
The initiative directly addresses public concerns regarding the potential impact of data centers on local communities, utility costs, and the environment.
Shapiro stated the objective is to hold data center developers accountable to strict standards in exchange for state support.
Key Development Criteria
Developers seeking state resources for data center construction will be required to adhere to specific conditions:
- Energy Costs: Developers must fund their own power generation or cover the costs of new generation to prevent increased utility expenses for residents and businesses.
- Transparency and Engagement: Projects must meet strict transparency standards and engage directly with local communities.
- Local Employment: Developers are expected to hire and train local workers and establish community benefit agreements that support host towns.
- Environmental Protection: Projects must commit to high standards for environmental protection, with a particular focus on water conservation.
Adherence to these criteria would result in faster permitting processes and access to tax credits for developers.
Broader Context
The rapid expansion of artificial intelligence (AI) and data center infrastructure has emerged as a significant political issue. Concerns include potential increases in electricity bills due to the energy demands of these operations, as well as environmental impacts. State and federal officials are currently developing policy responses to these challenges. Shapiro emphasized Pennsylvania's potential role in AI development, highlighting the national competition for AI supremacy and the necessity for selective project approval within the state.