# Pennsylvania Closes the Fast Lane — GRID Rules Bind AI Data Centers

Times of AI Desk · 2026-08-18 · Policy

[https://timesof.ai/2026/08/pennsylvania-shapiro-ai-data-center-order](https://timesof.ai/2026/08/pennsylvania-shapiro-ai-data-center-order)

> Governor Josh Shapiro signed EO 2026-05: DEP will only review data-center permits if developers sign a legally binding GRID consent order and have local approval; all AI data-center projects are removed from Fast Track; NDAs are barred; tax-exemption applicants must meet the same energy, water, and community tests.

Ohio just **signed** PORTS-Pike. Pennsylvania just **closed the fast lane**. State-level **siting politics** is now a first-class constraint on the same GW race Nvidia and OpenAI are financing.

**Pennsylvania Governor Josh Shapiro** signed **Executive Order 2026-05**, converting previously **voluntary** **GRID** (Governor’s Responsible Infrastructure Development) standards into a **permit gate**. **DEP** may evaluate data-center applications only after a **Consent Order and Agreement** committing to GRID **and** **all required local approvals**. **All AI data-center proposals** are **removed** from the **PA Permit Fast Track** program and **barred** from it going forward. **NDAs** with data-center projects are **not permissible**. The **sales-and-use tax exemption** for data-center equipment will require GRID compliance. State figures: **100+** proposals in public databases; **58** engaged DEP; **15** have applied for at least one permit; **five** have all first-phase permits.

## What GRID now requires

| Rule | Mechanism (EO 2026-05 / Shapiro newsroom) |
|------|-------------------------------------------|
| **Pay your own power** | Full cost of new generation, transmission, distribution — **no shift** to households |
| **Local yes** | DEP **will not issue** a permit without **required local approvals** |
| **Consent order** | Pre-application meeting + **COA** with penalties for breach (template published) |
| **Water / environment** | “Strict water conservation”; annual **energy and water** reporting to DEP |
| **Transparency** | Public **DEP permit-tracker map**; **no NDAs** |
| **Tax credit** | Computer Data Center Equipment Exemption **tied to GRID** |
| **Fast Track** | **All** data-center projects **off** OTO Fast Track |
| **Grid stress** | Special Counsel for Energy Affordability to push PUC: data centers **shed first**; they pay **PJM reliability-backstop** auctions |

Shapiro frames this as using **executive authority** after **Senate Republicans** declined to codify GRID; the House had advanced bills. WaPo notes a **reversal** of earlier, more welcoming posture after **Archbald** and similar local fights.

## Limits

- An **EO**, not a statute — next governor or legislature can unwind it.
- Does not ban data centers; it **front-loads local veto and self-funded power**.
- Not a federal rule. How many of the **58** DEP-engaged projects execute a COA is the test.

## Sources

- [Governor Shapiro: Executive Order on data center development (August 18, 2026)](https://www.pa.gov/governor/newsroom/2026-press-releases/governor-shapiro-signs-executive-order-on-data-center-developmen)
- [Executive Order 2026-05 (PDF)](http://www.pa.gov/content/dam/copapwp-pagov/en/governor/documents/eo2026_05_protecting%20pennsylvania%20consumers%20from%20data%20center%20impacts_final_executed.pdf)
- [Washington Post: Pennsylvania will sharply limit data center development (August 18, 2026)](https://www.washingtonpost.com/nation/2026/08/18/pennsylvania-gov-josh-shapiro-set-order-new-limits-data-center-development/)
- [Reuters: Pennsylvania governor signs order imposing new rules (August 18, 2026)](https://www.reuters.com/legal/government/pennsylvania-governor-signs-order-imposing-new-rules-set-up-ai-data-centers-2026-08-18/)