Republican Garrity presses Shapiro as communities push back on data centers
Pennsylvania Gov. Josh Shapiro said Tuesday that his administration will no longer place data center projects at the front of the line when issuing construction permits, ending the preferential treatment the facilities had received in Harrisburg. Under the new approach, his administration will also withhold a state tax exemption from data center operators unless they meet a defined set of standards Shapiro’s office laid out this week.
The standards cover three areas: electricity, water, and community engagement. Operators must pay the full cost of the electricity their facilities draw from the grid, limit their water use, and mount a local outreach campaign in the communities where they propose to build. The conditions were not described in greater detail in the announcement.
Shapiro, a Democrat, is considered a potential contender for the 2028 presidential race. According to the Associated Press, he is facing increasing pressure from his Republican opponent, Stacy Garrity, as data center issues gain traction with voters.
Communities across Pennsylvania are pushing back against proposed data center projects, according to the AP.
Pennsylvania’s move is part of a broader pattern. According to the AP, more governors are shifting their positions or taking additional steps to constrain data centers as the midterm elections approach. The shift is extending to gubernatorial races in some of the nation’s biggest states and presidential battlegrounds.
By linking permitting preference and tax exemptions to specific performance standards on electricity, water, and outreach, Shapiro is conditioning state support for data centers on the facilities meeting defined conditions in the communities that host them. Operators that meet the standards will continue to be eligible for the expedited permit treatment and the tax exemption; those that do not will face a more standard review.