Gov. Shapiro releases ‘Governor’s Responsible Infrastructure Development’ standards

WILKES-BARRE — Gov. Josh Shapiro on Wednesday unveiled the full Governor’s Responsible Infrastructure Development (GRID) standards, establishing clear guardrails and accountability requirements for data center development in the Commonwealth of Pennsylvania.

First introduced in the Governor’s 2026-27 budget address, the GRID Standards set expectations for developers seeking support from the Commonwealth — including coordinated project support through the Commonwealth’s Office of Transformation and Opportunity (OTO), greater speed and certainty in permitting, and access to state tax incentives.

According to the Governor’s Office, the plan was developed with input from local leaders, organized labor, industry, and environmental stakeholders. The GRID Standards outline specific steps that data center developers must take to demonstrate that proposed projects provide real value to local communities, mitigate or offset impacts on Pennsylvanians, and are developed responsibly.

“As Pennsylvania continues to compete for major economic development projects and lead on innovation, we have a responsibility to set strict accountability standards and ensure these projects create real opportunity for our communities,” Shapiro said. “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. That’s why I am putting clear guardrails in place to hold developers accountable to protect consumers, strengthen communities, and put Pennsylvanians first.

“If companies want the Commonwealth’s full support, they must meet strong standards on energy affordability, clean energy generation, transparency, workforce development, community impact, and environmental protection. This is about setting a higher bar for projects and ensuring development happens responsibly and in a way that benefits Pennsylvanians.”

According to a news release from the Governor’s office, the GRID Standards require developers seeking Commonwealth support to submit a joint application for GRID Certification to the Office of Transformation and Opportunity (OTO) and the Department of Revenue (DOR), outlining how they will meet four standards: protecting energy affordability, promoting transparency and community engagement, supporting the workforce and economic development, and protecting the environment.

“Companies and developers are looking to build data centers all across the country, and Pennsylvania is uniquely positioned to be selective on which projects can bring economic opportunity to our Commonwealth without hurting local communities,” said Rick Siger, Pennsylvania Department of Community and Economic Development secretary. “The Shapiro Administration is focused on supporting good projects here in Pennsylvania by setting strict standards that require developers to pay entirely for their own energy needs, meet our environmental requirements, create local jobs, and deliver millions in additional tax revenue to our cities, townships, and boroughs.”

If the application meets the requirements set out in the GRID Standards, OTO and DOR will grant the project GRID certification, and it will become eligible to participate in OTO’s PA Permit Fast Track Program, which streamlines permitting for high-impact economic development and infrastructure projects that require permits from multiple Commonwealth agencies.

Data center developers must be certified by DOR to qualify for the Computer Data Center Equipment Exemption Program under Act 25 of 2021.

This program provides an exemption from Pennsylvania sales tax when computer data center equipment is sold to, used, or consumed in a certified data center by an owner, operator, or qualified tenant.

As part of the GRID Standards, the Shapiro Administration is calling on the General Assembly to pass legislation amending that tax benefit. Once this legislation is signed into law, developers will be required to secure GRID certification to be eligible for tax benefits on the purchase of computer data center equipment.

If left unchanged, the news release states that the current sales and use tax exemption is projected to cost the Commonwealth more than $517 million annually by FY 2030-31. The Shapiro Administration’s proposal would require GRID applicants to use that revenue to invest in key public priorities, including investing in education, protecting our environment, upgrading our infrastructure, supporting public safety, and expanding workforce development.

The GRID Standards focus on four key areas, with multiple accountability measures in place to ensure developers adhere to the Standards if they want to receive Commonwealth support:

• Protecting Energy Affordability: In its initial application for GRID certification, a project developer must provide DOR and OTO with an energy plan detailing how it will provide for its energy needs without imposing costs on Pennsylvanians and other utility ratepayers. Developers must agree to build, bring online, or purchase incremental electric capacity needed to meet new energy demand, while paying the full cost of that capacity.

That capacity must generally come from resources located within the same deliverability area as the proposed GRID project and must also include increasing the percentage of energy from dispatchable clean firm energy resources located within the Commonwealth, up to 32 percent in 2035. Developers must also pay all costs associated with interconnection, transmission, distribution, network upgrades, ancillary services, or dedicated facilities caused in whole or in part by the project’s electricity demand.

• Promoting Transparency and Community Engagement: Developers seeking GRID certification must provide DOR and OTO with a community outreach plan that promotes public engagement and transparency, including commitments to notify impacted local governments, hold public meetings, and consult with municipal leaders at a sufficiently early stage of the project to enable meaningful public input on key design decisions.

Developers must also provide information on the end user(s) for the data center and a footprint report detailing the project’s planned building size, campus acreage, estimated peak electric demand, estimated annual water consumption and water source, percentage of electricity sourced from non-emitting resources, and expected Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).

• Supporting Workforce and Economic Development: Developers must provide DOR and OTO with a community benefit plan detailing anticipated contributions to the state and local community beyond existing legal obligations. To qualify for GRID certification, developers must commit to making at least $250 million in cumulative new investment, creating at least 200 prevailing wage construction jobs, at least 50 jobs paying at least 125% of Pennsylvania’s average statewide wage by the fourth anniversary of certification, and then paying at least $1.5 million to employees at the project site after the fourth anniversary.

Developers must also submit hiring and workforce training plans that encourage local workforce participation, including the use of registered apprenticeship programs and skilled construction labor, and enter into community benefit agreements addressing issues such as traffic studies, noise and lighting mitigation, air quality requirements, emergency management coordination, aesthetic concerns, and financial contributions toward local priorities.

• Strengthening Environmental Protection: Developers must provide DOR and OTO with a sustainability plan detailing how they will deploy advanced technology to limit water and energy consumption by the data center through certifications such as LEED for Data Centers, EPA Energy Star, GBI Green Globes, or International Organization for Standardization certification for data centers.

Developers must also commit to minimizing local air pollutants by using zero-emission energy storage systems where possible or backup generators meeting strict emissions standards and operational practices that materially reduce emissions.