Pennsylvania Data Center Order Puts Local Approval First

Pennsylvania Governor Josh Shapiro has signed an executive order requiring data center developers to secure local approval and make binding commitments regarding energy, infrastructure, and community impacts before the Commonwealth reviews permit applications.

The order requires legally binding commitments under Pennsylvania’s GRID standards, which address energy costs, environmental protections, workforce development, transparency, and community engagement. It also removes data centers from the Commonwealth’s Fast Track permitting process and prohibits nondisclosure agreements for data center projects.

Maryland took a different approach this year. The Utility RELIEF Act lowered the threshold for a “large load customer” from 100 megawatts to 25 megawatts and directs the Public Service Commission (PSC) to consider the costs those customers create for the electric system when approving their rates, including certain capacity, interconnection, and transmission costs.

The law also requires PSC to create a large load registry by July 1, 2027, with developers reporting information on energy needs, duplicative interconnection requests, backup generation, water use and source, site control, and other project details. A separate voluntary program offers qualifying large-load projects priority in the interconnection process and, for top-rated projects, a guaranteed 12-month MDE permit review.

Unlike Pennsylvania’s new order, Maryland law does not tie those State approvals or incentives to local approval. It also does not require developers to cover infrastructure and service costs they create for host counties.

At #MACoCon last week, Governor Wes Moore addressed both issues directly. Moore said taxpayers should not shoulder infrastructure costs incurred by major energy users, and local governments should have the final say on whether data center projects move forward.

Several Maryland counties have imposed moratoriums, pauses, or bans on data center development as local governments consider the infrastructure, energy, fiscal, land-use, and community impacts of these projects.

With data center development expected to remain a major issue for the 2027 legislative session, counties will continue pressing for a meaningful local role, protections for taxpayers, and the tools to hold developers accountable for project impacts.

Stay tuned to Conduit Street for more information.