Pennsylvania Makes Data Centre Siting a Signed Consent Order, Not a Permit Queue

Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday that removes data centres from the state's permit fast-track programme, blocks environmental review until developers have secured local approval, and bars state agencies from signing non-disclosure agreements on data centre projects ^[1][2]. For anyone modelling capacity in the PJM footprint, the operative change is sequencing: the Department of Environmental Protection will not begin reviewing a permit application unless the developer has signed a consent order and agreement binding it legally to the state's requirements and unless every required local approval is already in hand ^[5].

That inverts the usual order of operations. State review has been the stage where a developer accumulates leverage before facing a township; now the township goes first, and the state file opens only after a negotiated instrument exists. The framework is branded GRID, for Governor's Responsible Infrastructure Development, and rests on energy affordability, transparency and community engagement, workforce development, and environmental protection, with six agencies directed to implement it, including the DEP, the Public Utility Commission, and the Special Counsel for Energy Affordability ^[3][4]. The NDA ban matters more than it sounds: it removes the confidentiality that siting teams normally rely on while assembling land and interconnection ^[2].

The financial terms are where a pro forma breaks. Developers must pay the full cost of new generation, transmission, distribution, and other infrastructure needed to power their project "without shifting costs to Pennsylvania households and businesses" ^[6]. The Special Counsel has been directed to write protocols under which data centres lose service before other customers during grid stress, and procedures charging data centres rather than ratepayers for reliability backstop auction costs ^[8]. Annual reporting of energy consumption, peak demand, total water use, and maximum-day water demand becomes mandatory ^[9].

The pipeline this lands on is large. Pennsylvania has identified more than 100 data centre proposals, 15 have applied for DEP permits, and five have everything they need ^[12], meaning only a third of applicants are fully permitted ^[23]. Amazon committed $20bn to Pennsylvania data centres in June 2025, the largest private investment in state history ^[13], and the Homer City Energy Campus is a $10bn-plus development with 4.5 gigawatts of gas generation across 3,200 acres ^[14].

The cost backdrop explains the politics. Wholesale power prices in PJM territory rose 76% year on year in the first quarter of 2026, to $136.53 per megawatt-hour ^[15], and PJM's independent market monitor attributes $7.3bn of the last capacity auction's $16.1bn total to data centre load ^[16], roughly 45% ^[24]. Shapiro cited Archbald, a borough of 7,500 people facing six proposed campuses, as the case the order is meant to catch ^[17]. He said the requirements are "not voluntary standards" but legally binding conditions of operating in the state ^[10], and told Reuters he is "using the full weight of my executive authority to block objectionable, unwarranted projects" ^[11].

The order also fills a gap: four data centre bills passed the Pennsylvania House and stalled in the Senate, covering PUC rules for loads above 25 megawatts, water-use notification thresholds, annual reporting with $10,000 daily penalties, and a model township ordinance ^[18]. Shapiro calls his the strictest set of guardrails in the country, which is a characterisation rather than a finding, and sits awkwardly beside New York's statewide hyperscale moratorium of up to a year enacted in July and Texas pausing interconnection approvals against roughly 474 gigawatts of pending requests ^[22][19].

Watch the DEP's promised public permit tracking map ^[20], the first consent orders actually signed and what they concede, and whether the curtailment and backstop-cost protocols arrive with enforceable numbers.