Governor Shapiro Releases Full Governor’s Responsible Infrastructure Development (GRID) Standards to Protect Pennsylvanians and Establish Strict Guardrails to Hold Data Center[...]

The Governor's Responsible Infrastructure Development (GRID) initiative establishes strict standards that data centers must comply with to receive support from the Commonwealth.

The GRID Standards ensure large-scale infrastructure projects are developed responsibly by protecting Pennsylvania ratepayers, creating good-paying jobs, strengthening environmental safeguards, promoting transparency, and ensuring local communities have a voice in major infrastructure projects.

The Shapiro Administration is also rolling out a new local government toolkit through the Governor's Center for Local Government Services (GCLGS) to help municipalities navigate data center proposals and make informed decisions that work best for their communities.

Read the full GRID Standards.

Harrisburg, PA - Today, Governor Josh Shapiro unveiled the full Governor's Responsible Infrastructure Development (GRID) Standards, establishing clear guardrails and accountability standards for data center development in the Commonwealth of Pennsylvania. First introduced in the Governor's 2026-27 budget address, the GRID Standards set expectations for developers seeking support from the Commonwealth - including coordinated project support through the Commonwealth's Office of Transformation and Opportunity (OTO), greater speed and certainty in permitting, and access to state tax incentives.

Developed with input from local leaders, organized labor, industry, and environmental stakeholders, the GRID Standards outline specific steps data center developers must take to demonstrate that proposed projects provide real value to local communities, mitigate or offset any impacts on Pennsylvanians, and are being developed responsibly.

"As Pennsylvania continues to compete for major economic development projects and lead on innovation, we have a responsibility to set strict accountability standards and ensure these projects create real opportunity for our communities," said Governor Shapiro. "I've heard directly from Pennsylvanians who are concerned about the impact data center development could have on their communities, the environment, and their utility bills. That's why I am putting clear guardrails in place to hold developers accountable to protect consumers, strengthen communities, and put Pennsylvanians first. If companies want the Commonwealth's full support - they must meet strong standards on energy affordability, clean energy generation, transparency, workforce development, community impact, and environmental protection. This is about setting a higher bar for projects and ensuring development happens responsibly and in a way that benefits Pennsylvanians."

The GRID Standards require developers seeking Commonwealth support to submit a joint application for GRID Certification to the Office of Transformation and Opportunity (OTO) and the Department of Revenue (DOR) outlining how they will meet four standards: protecting energy affordability, promoting transparency and community engagement, supporting the workforce and economic development, and protecting the environment.

"Companies and developers are looking to build data centers all across the country, and Pennsylvania is uniquely positioned to be selective on which projects can bring economic opportunity to our Commonwealth without hurting local communities," said Pennsylvania Department of Community and Economic Development Secretary Rick Siger. "The Shapiro Administration is focused on supporting good projects here in Pennsylvania by setting strict standards that require developers to pay entirely for their own energy needs, meet our environmental requirements, create local jobs, and deliver millions in additional tax revenue to our cities, townships, and boroughs."

If the application meets the requirements laid out in the GRID Standards, OTO and DOR will grant the project GRID certification and it will become eligible to participate in OTO's PA Permit Fast Track Program, which streamlines permitting for high-impact economic development and infrastructure projects requiring permits from multiple Commonwealth agencies.

Currently, data center developers must be certified through DOR to qualify for a sales and use tax exemption for the Computer Data Center Equipment Exemption Program under Act 25 of 2021. This program provides an exemption from Pennsylvania sales tax when computer data center equipment is sold to, used, or consumed in a certified data center by an owner, operator, or qualified tenant. As part of the GRID Standards, the Shapiro Administration is calling on the General Assembly to pass legislation amending that tax benefit. Once this legislation is signed into law, developers will be required to secure GRID certification in order to be eligible for tax benefits for the purchase of computer data center equipment.

If left unchanged, the current sales and use tax exemption is projected to cost the Commonwealth more than $517 million annually by FY 2030-31. The Shapiro Administration's proposal would require GRID applicants to use that revenue to invest in key public priorities, including investing in education, protecting our environment, upgrading our infrastructure, supporting public safety, and expanding workforce development.

OTO will post detailed information about each project that earns GRID certification on its website. Once operational, projects must provide annual reporting and third-party-validated documentation to maintain GRID certification and associated tax benefits on an ongoing basis. If the developer fails to meet requirements, DOR may revoke GRID certification and recapture all or part of the tax benefits provided.

The GRID Standards focus on four key areas, with multiple accountability measures in place to ensure developers adhere to the Standards if they want to receive Commonwealth support:

• Protecting Energy Affordability: In its initial application for GRID certification, a project developer must provide DOR and OTO with an energy plan detailing how it will provide for its energy needs without imposing costs on Pennsylvanians and other utility ratepayers. Developers must agree to build, bring online, or buy incremental electric capacity needed to meet new energy demand while paying the full cost of the capacity. That capacity must generally come from resources located within the same deliverability area as the proposed GRID project, and must also include increasing percentages of energy coming from dispatchable clean firm energy resources located within the Commonwealth, up to 32 percent in 2035. Developers must also pay all costs associated with interconnection, transmission, distribution, network upgrades, ancillary services, or dedicated facilities caused in whole or in part by the project's electricity demand.
• Promoting Transparency and Community Engagement: Developers seeking GRID certification must provide DOR and OTO with a community outreach plan that promotes public engagement and transparency, including commitments to notify impacted local governments, hold public meetings, and consult with municipal leaders at a sufficiently early stage of the project to enable meaningful public input on key design decisions. Developers must also provide information on the end user(s) for the data center and a footprint report detailing the project's planned building size, campus acreage, estimated peak electric demand, estimated annual water consumption and water source, percentage of electricity sourced from non-emitting resources, and expected Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).
• Supporting Workforce and Economic Development: Developers must provide DOR and OTO with a community benefit plan detailing anticipated contributions to the state and local community beyond existing legal obligations. To qualify for GRID certification, developers must commit to making at least $250 million in cumulative new investment, creating at least 200 prevailing wage construction jobs, at least 50 jobs paying at least 125 percent of Pennsylvania's average statewide wage by the fourth anniversary of certification, and then paying at least $1.5 million to employees at the project site after the fourth anniversary. Developers must also submit hiring and workforce training plans that encourage local workforce participation, including the use of registered apprenticeship programs and skilled construction labor, and enter into community benefit agreements addressing issues such as traffic studies, noise and lighting mitigation, air quality requirements, emergency management coordination, aesthetic concerns, and financial contributions toward local priorities.
• Strengthening Environmental Protection: Developers must provide DOR and OTO with a sustainability plan detailing how they will deploy advanced technology to limit water and energy consumption by the data center through certifications such as LEED for Data Centers, EPA Energy Star, GBI Green Globes, or International Organization for Standardization certification for data centers. Developers must also commit to minimizing local air pollutants by using zero-emission energy storage systems where possible or backup generators meeting strict emissions standards and operational practices that materially reduce emissions. For projects located within the watershed of a "High Quality/Exceptional Value Water" or within areas identified as "Pennsylvania Climate Change Connectivity," developers must also commit to supporting the monitoring and mitigation of impacts to land, water, and biological resources beyond existing regulatory and permitting requirements.

The Shapiro Administration is rolling out a new local government toolkit through the Governor's Center for Local Government Services (GCLGS) to help municipalities navigate data center proposals and make informed decisions that work best for their communities. As Pennsylvania communities increasingly receive inquiries about data center development, the toolkit will provide practical guidance for local officials on issues such as zoning, infrastructure capacity, resource use, fiscal impacts, and community benefits. Additionally, GRID certification can serve as a clear standard to help local communities identify projects that have committed to protecting energy affordability, promoting transparency and community engagement, supporting workforce and economic development, and protecting the environment.

The Shapiro Administration is working with leaders in the General Assembly to introduce accompanying legislation that will codify the GRID Standards into law. Governor Shapiro and members of the Pennsylvania House who have supported these efforts share a common goal of protecting Pennsylvania communities and establishing strong, commonsense rules governing the rapidly growing data center industry.

The Administration has also worked closely with Representative Rob Matzie and the co-sponsors of House Bill 1834, which passed the House of Representatives in late March, to help establish baseline standards for how data centers should operate in Pennsylvania. The GRID Standards build on that foundation by incorporating the bill's clean firm energy requirements and encouraging developers to meet even stronger standards if they want to receive tax benefits and other Commonwealth support.

Building on Three Years of Progress: Governor Shapiro's Record on Energy, Investments, and Affordability

The GRID Standards also build on the Shapiro Administration's broader efforts to attract investment, strengthen Pennsylvania's energy and infrastructure economy, and ensure economic development projects deliver lasting benefits for communities across the Commonwealth. Since taking office, Governor Shapiro has been laser-focused on strengthening Pennsylvania's economy and growing the Commonwealth's workforce:

• In June 2025, Governor Shapiro secured the largest private sector investment in Pennsylvania history - a $20 billion investment from Amazon to build AI innovation campuses and create 1,250 permanent high-paying technology jobs across the Commonwealth. The Administration worked closely with local leaders and Amazon to land the deal and continues to engage with communities in Luzerne and Bucks counties to ensure local concerns are heard and addressed while additional Pennsylvania sites are explored.
• Pennsylvania has a long legacy as an energy leader, and major technology investments like AI data centers are tapping into the Commonwealth's strengths as a net energy exporter. Pennsylvania has the power ready to support these projects. The Commonwealth has helped restart Crane Clean Energy Center (formerly Three Mile Island) to generate new nuclear clean power, supported the conversion of the former Homer City coal-fired power plant into a natural gas facility, and secured a major investment from battery manufacturer Eos Energy in Western Pennsylvania.
• Governor Shapiro's "all-of-the-above" energy strategy is focused on diversifying Pennsylvania's power grid to secure the Commonwealth's energy future while building more reliable, affordable, and sustainable energy. As part of that strategy, the Governor's "Lightning Plan" would help create energy jobs, lower costs for consumers, and strengthen Pennsylvania's energy independence by supporting next-generation power development. The Shapiro Administration has already made significant progress on energy affordability, reliability, and infrastructure through a range of actions and collaborations supported by labor leaders, environmental advocates, consumer advocates, and industry stakeholders.
• For years, the Governor has fought to stop unnecessary electricity rate increases and ensure the grid works better for consumers, taking legal action in 2024 after repeatedly pushing PJM to modernize its rules, speed up project approvals, and improve reliability to block a flawed auction design that would have driven up costs. He has continued building on that progress - convening all 13 PJM governors to drive regional reform, creating the PJM Governors Collaborative to strengthen state oversight, and advancing new policies in Pennsylvania to improve transparency and prevent unnecessary rate increases. Earlier this year, Governor Shapiro secured an extension of his price cap through 2030, bringing the total savings for PJM's 67 million customers to up to $45 billion - including an estimated average savings of $806 for Pennsylvania households over the next four years. The Governor also helped save nearly two million Pennsylvanians $510 million after demanding PECO withdraw its proposed rate increase.
• At the same time, the Shapiro Administration has made Pennsylvania a national model for permitting reform and efficient government. The Administration has also worked to eliminate permitting backlogs and modernize state government operations while maintaining strong environmental protections. Most recently, the Department of Environmental Protection eliminated its backlog of more than 2,400 overdue permit applications. Governor Shapiro also signed historic permitting reform into law as part of the 2025-26 budget, including expanding the SPEED permitting program, creating a public permit tracking database, accelerating permit review timelines, and securing funding to hire additional DEP staff to thoroughly process and review permit applications.
• Since taking office, Governor Shapiro has attracted more than $41 billion in private-sector investment to Pennsylvania and helped create nearly 23,000 good-paying jobs across the Commonwealth. Pennsylvania is now the only state in the Northeast with a growing economy according to Moody's Analytics and has earned national recognition as one of the top states in the nation for business growth, job creation, and site readiness - demonstrating that Pennsylvania can grow its economy while continuing to protect workers, consumers, and communities.

Read the GRID Standards.

Watch the Governor's full budget address to a joint session of the House and Senate and read the Governor's full remarks as prepared for delivery. Read the Governor's 2026-27 budget in brief.

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