Shapiro unveiled a new set of data center development standards, but Garrity’s gubernatorial campaign characterized the plan as “damage control.”
Pa. Gov. Josh Shapiro unveiled a formal set of standards last week governing AI data center development in the state, a move that comes after a year of rapidly shifting public opinion on an industry he once championed.
The new plan, formally titled the Governor’s Responsible Infrastructure Development Standards, or GRID, represents a notable shift in tone for the governor. As recently as June 2025, Shapiro stood alongside Amazon executives to announce a $20 billion investment to build two data center campuses in the commonwealth, the largest private-sector investment in state history, and declared Pennsylvania was “all in on AI.”
Now, with electricity rates rising and communities across the state pushing back against the facilities, Shapiro is offering a different message.
“I’ve heard directly from Pennsylvanians who are concerned about the impact data center development could have on their communities, the environment, and their utility bills,” the governor said in a prepared statement. “That’s why I am putting clear guardrails in place to hold developers accountable to protect consumers, strengthen communities, and put Pennsylvanians first.”
The core of the GRID plan is a “bring your own energy” requirement. Under the standards, data center developers must build, bring online, or buy the incremental electric capacity needed to meet their new energy demand, and pay the full cost of that capacity. The new generation must be located within the same regional grid as the data center, and by 2035, developers must ensure up to 32% of their energy comes from sources including nuclear, hydropower, solar, wind and batteries.
The urgency is real for Pennsylvania ratepayers. Average household electricity rates in the state jumped nearly 14 percent in the last year, a trend energy experts have linked in part to the explosive growth in power-hungry data center demand.
Developers seeking state support would be required to meet GRID standards, but state lawmakers would need to pass legislation, including amending current tax laws, to implement the governor’s proposed standards more broadly. Shapiro’s only immediate carrot is continued access to a “Fast Track” permitting program; developers are not required to use it to build.
The political dimensions of the debate are significant. Shapiro is up for reelection this fall, and his Republican challenger, state Treasurer Stacy Garrity, has seized on the issue. Her campaign released a video calling Shapiro’s announcement “damage control,” arguing he spent the past year promoting unregulated data center development and is now trying to recast himself as a protector of Pennsylvania communities. Garrity has said that as governor, she would pause data center development in Pennsylvania entirely.
“I don’t think a full moratorium is necessary. I just think we need a pause to get it together, to make sure the zoning is updated, to make sure that nothing falls on the backs of ratepayers,” Garrity said.
The issue has also scrambled the usual partisan lines at the state legislature. Republican state Rep. Charity Krupa, whose rural Fayette County district faces a proposed $1.7 billion high-voltage transmission line tied in part to data center energy demand, said she found common ground with Shapiro on the BYOE requirement, noting it could revive Pennsylvania’s natural gas industry. But she said strict water protections are also essential.
