Pennsylvania Governor Josh Shapiro has signed Executive Order 2026-05, transforming the state’s voluntary GRID Requirements into binding conditions for data center developers.
The order ties compliance with the Governor’s Responsible Infrastructure Development framework to both streamlined permitting access and valuable tax incentives across the state.
Pennsylvania joins New York, Louisiana, Nebraska, and Texas in a growing wave of gubernatorial action reshaping how data centre projects are approved and incentivised.
All data centre projects have been removed from the PA Permit Fast Track Program, with only GRID-certified projects eligible to participate going forward.
Data centre projects with an anticipated peak electrical demand of 25 MW or more must now execute a template Consent Order and Agreement with the Pennsylvania Department of Environmental Protection.
Developers who decline to comply with GRID Requirements face significant permitting delays, as well as the loss of access to the state’s fast-track approvals process.
Governor Shapiro’s order also directs the Pennsylvania Department of Revenue to condition the Computer Data Center Equipment sales and use tax exemption on GRID compliance.
Developers who decline certification risk losing this tax benefit entirely, affecting not only themselves but also tenants who were expecting to benefit from the exemption.
For those willing to engage with the GRID framework, the Executive Order creates a clear pathway that includes Fast Track Programme participation, tax benefits, and eligibility for certain economic development zone programmes.
The order raises immediate questions for projects already in the pipeline, including those with pending permit applications, projects nearing completion, and facilities already operational.
Law firm Ballard Spahr, whose attorneys Chantelle McClamb and Christopher A. Jones authored analysis of the order, noted that agency implementation is still underway and that developers should act quickly to assess their position.
The firm said it can help developers determine the impact of Fast Track removal on active or planned projects, as well as evaluate how in-progress and substantially completed projects may be affected.
With significant tax benefits and permitting timelines at stake, developers across Pennsylvania’s data centre sector face mounting pressure to align their investment assumptions with the new compliance requirements under Executive Order 2026-05.