Governor Josh Shapiro signed Executive Order 2026-05 on August 18. The numbers behind it explain why.
Over 100 data center facilities have been proposed across Pennsylvania. Only 20 have actually filed permit applications with the Department of Environmental Protection, and just 14 hold active tax exemption certificates.
Now, every proposed project over 25 MW of peak demand has to sign a Consent Order and Agreement with DEP before permitting moves forward.
Here's the cost driving the crackdown. Across PJM's last four capacity auctions, data centers racked up $29.4 billion in charges, 46% of the total, according to PJM's Independent Market Monitor.
Even with Shapiro's negotiated price cap, which the order says has already saved consumers over $30 billion, that hasn't slowed things down. PJM is projecting 74 gigawatts of new summer peak load through 2045, mostly from data centers.
The Trade-Off, Spelled Out:
Sign the GRID Requirements agreement, and DEP reviews and issues your permits on a rolling basis.
Skip it, and DEP won't start reviewing your paperwork until you've got full local zoning approval and any required water permits already in hand, with permits issued only after everything's in.
Either way, every data center project just got booted from the PA Permit Fast Track Program, signed agreement or not.
DEP also has to build a public map tracking every proposed project, and NDAs between state agencies and data center developers are now off the table. Starting July 1, 2027, operating data centers have to file annual reports covering energy and water consumption, efficiency measures, and any on-site power generation.
Amps and Circumstance:
The order also pushes the PUC to make sure utilities curtail data centers first, not residential customers, during grid emergencies, and to stop utilities from classifying data centers as "critical load" exempt from cuts.
Bottom line: if you want to build a data center in Pennsylvania, the state wants your signature before it wants your shovel in the ground.
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