Governor Josh Shapiro has unveiled the Governor’s Responsible Infrastructure Development Standards, known as GRID, establishing accountability requirements for data centre development across Pennsylvania.
The GRID Standards were first introduced during the Governor’s 2026-27 budget address and are designed to position Pennsylvania as a destination for large-scale data centre investment.
Developers seeking Commonwealth support must submit a joint application for GRID Certification to the Office of Transformation and Opportunity and the Department of Revenue.
The certification process requires developers to demonstrate compliance across four core areas: protecting energy affordability, promoting transparency and community engagement, supporting workforce development, and protecting the environment.
Approved developers unlock access to the PA Permit Fast Track Program, eligibility for sales and use tax exemptions on computer equipment, and participation in preferential tax zone programmes.
Certification is not a one-time requirement, as projects must file a pre-operations compliance report and submit annual updates to maintain their status.
On energy affordability, developers must cover the full cost of new electricity capacity their project requires, with no cost-shifting to existing ratepayers.
New power capacity must also come from new or incremental generation resources located within the same PJM Locational Deliverability Area as the proposed project.
Workforce commitments include at least $250 million in new investment, 200 prevailing-wage construction jobs, and 50 permanent positions paying 125 percent of the state’s average wage within four years of certification.
After that four-year period, developers must demonstrate that on-site employees are earning at least $1.5 million in aggregate annual compensation.
Environmental requirements include pursuing sustainability certifications such as LEED Gold or higher, EPA Energy Star, GBI Green Globes, or ISO-equivalent standards.
Backup power systems must rely on zero-emission storage where feasible, or at minimum on generators meeting Tier 4 emissions standards under the environmental component.
The current sales and use tax exemption for data centre equipment is projected to cost Pennsylvania more than $517 million annually by the 2030-31 fiscal year if left unchanged.
The Shapiro administration is calling on the General Assembly to pass legislation requiring developers to secure GRID certification to access those tax benefits going forward.
The Data Center Coalition said it has “strong concerns” that the standards will create a “complicated framework that would present significant challenges for future development and operation of data centers in the commonwealth.”
Senator Tracy Pennycuick, chair of the Senate Communications and Technology Committee, has separately proposed legislation requiring large data centres to provide their own power and imposing water-use restrictions.
Her legislative package would also establish a Pennsylvania Data Center Advisory Committee and prohibit state and local governments from entering into nondisclosure agreements with developers.
Separately, Senator Jarrett Coleman and Representative Jamie Walsh have introduced legislation that would repeal Pennsylvania’s existing data centre equipment tax exemption entirely.
Their bill would also allow municipalities to impose temporary moratoriums on data centre applications while local zoning rules are updated to reflect the sector’s rapid growth.
The GRID Standards were developed with input from local leaders, organised labour, industry groups, and environmental stakeholders, reflecting the broad range of competing interests at play.