State Treasurer Stacy Garrity (R) has launched a direct attack on Gov. Josh Shapiro's data center policies, holding a listening session with local officials grappling with development concerns. According to WHTM, Garrity called for a pause on new data center projects to give communities time to properly regulate them, while blaming Shapiro for being too soft with companies seeking to develop in the state. The Republican candidate has positioned herself against the popular incumbent's data center framework, arguing there has been 'a lot of ambiguity, flip-flops' coming out of the governor's office. This opposition comes as the data center boom generates extraordinary wealth, with hyperscalers among the most valuable companies in human history and AI services expected to generate tens of billions in revenue.
Pennsylvania Gov. Josh Shapiro has unveiled the Governor's Responsible Infrastructure Development Standards (GRID Standards), establishing comprehensive requirements for large data center projects seeking state support. According to reports from Duane Morris Government Strategies, the new framework requires data center developers to secure certification before receiving state incentives, fast permits, or tax benefits. The standards represent one of the most detailed state frameworks for data center development, designed to address resident concerns about power demand, water use, and infrastructure costs. However, the scale of harm to nearby communities extends beyond electricity prices, with a single large data center using up to 5 million gallons of water per day - equivalent to a city of 50,000 people.
The GRID Standards establish significant financial and employment thresholds for eligible projects. As reported by Duane Morris Government Strategies, developers must commit at least ₹2,500 crore ($250 million) in investment to qualify for state support. Projects must also create at least 200 construction jobs and maintain 50 permanent jobs within four years that pay at least 125% of Pennsylvania's average wage. The framework requires hiring plans to explain how local workers can access apprenticeships and construction opportunities, connecting state support directly with job targets. However, data centers employ on average only 157 permanent workers - an extraordinarily low jobs return on billions in public subsidy, with companies frequently hiding behind non-disclosure agreements.
The new standards impose strict energy requirements on data center developers, preventing cost shifting to current utility customers. According to the framework, developers must pay the full cost of new power generation from new or incremental generation resources within the same PJM Locational Deliverability Area. Facilities larger than 100,000 square feet must support future solar installations, placing energy planning into early design work. The standards require developers to identify facility end users, hold public meetings before major design decisions, and provide comprehensive project disclosures including size, expected water use, and efficiency metrics. However, AI data center demand in Virginia alone contributed to an 833% increase in regional capacity market auction prices for 2025-2026, with electricity prices in some data center-heavy regions surging over 250% in five years.
As data center opposition grows, communities are increasingly turning to Community Benefit Agreements (CBAs) as a legally binding solution. The City of Lancaster successfully negotiated a CBA with the developers of the Lancaster AI Hub, securing ₹160 crore ($20 million) in community contributions before construction was finalized. Key provisions include a hard cap of 20,000 gallons per day of municipal water use per campus, 100% clean energy requirement backed by tiered financial penalties of up to ₹800 crore ($10 million) per building, and strict noise limits tied to pre-construction ambient levels. CBAs allow communities to extract meaningful, enforceable protections from developers, with the credibility of opposition giving negotiations their teeth. This approach allows communities to understand the scale and type of impacts before finalizing the financial structure of agreements, while maintaining leverage and ensuring that non-opposition is tied to a complete, enforceable package of commitments.
