Notice

Local Government Data Center Toolkit

Pennsylvania has introduced new Governor's Responsible Infrastructure Development (GRID) Standards to regulate how large data centers are developed in the state. The standards are designed to ensure that projects receiving state support — such as tax incentives and expedited permitting — provide economic benefits without increasing energy costs, harming the environment, or negatively affecting local communities.  A new Data Center Planning Toolkit has been made available to assist local governments in the Commonwealth in making informed decisions about data centers.

Key requirements for developers include:

• Paying for the additional energy infrastructure their projects require so utility costs are not shifted to residents
• Engaging local governments and communities early through public meetings and transparency requirements
• Creating major economic benefits, including large investments, construction jobs, and permanent high-paying jobs
• Following stronger environmental and sustainability standards related to energy efficiency, emissions, and water use

Projects that receive GRID certification would qualify for faster permitting and certain state tax benefits, but they would also face ongoing reporting requirements and could lose certification if they fail to meet the standards.

The policy reflects growing debate in Pennsylvania over the rapid expansion of AI and data center infrastructure. Supporters argue the standards create accountability and protect communities, while critics and some residents remain concerned about electricity demand, water consumption, environmental impacts, and local zoning pressures.