Shapiro administration releases development standards for data centers
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As developers race to put data centers in communities across Pennsylvania, Gov. Josh Shapiro this week released standards that he said data centers must follow in order to receive tax incentives and other support.
The standards, which are being called the Governor’s Responsible Infrastructure Development (GRID) Standards, are being issued as worries and outright opposition to data centers intensifies in many places, with residents concerned about the impact on nearby water supplies, the environment and their own electricity bills.
Shapiro said in a statement, “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.”
He added, “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.”
The standards would be voluntary and would require developers seeking support from Harrisburg to submit an application outlining how they would engage with the community, boost economic development, and ensure that electric bills for residents would not go up. If an applicant meets all the GRID Standards, it will be eligible to have its permit fast-tracked by the state’s Office of Transformation and Opportunity.
Plans would need to be submitted under the GRID Standards outlining how a developer would provide for a data center’s energy needs without burdening residential or business ratepayers. The developers would have to agree to build, bring online or buy incremental electric capacity to meet the data center’s energy needs. They would also have to provide details on how they would limit water and energy consumption at a proposed data center and curb air pollution.
GRID certification would also require developers to submit a community outreach plan that would include public meetings, how large the data center would be and when its peak electricity demand would be. Getting certified would also require developers to create at least 200 construction jobs at prevailing wages, and enter into community benefit agreements that forecast how much they would contribute to local communities and the state.
Rick Siger, secretary of the Pennsylvania Department of Community and Economic Development, said, “Companies and developers are looking to build data centers all across the country, and Pennsylvania is uniquely positioned to be selective on what projects can bring opportunity to our commonwealth without hurting local communities.”
The Shapiro administration has also created a new local government “toolkit” that it says will “help municipalities navigate data center proposals and make informed decisions that work best for their communities.”
The proposed standards received a mixed reception following their unveiling. The environmental advocacy group Penn Future has called for a moratorium on data center development until more regulations are in place, and said in a statement the GRID Standards “are unenforceable and could easily be discarded.”
The group said the standards “fall short because they are neither laws nor regulations and they may not even be enforced in the future.”
Robert Routh, Pennsylvania policy director of climate and energy for the National Resources Council, said Shapiro “has put a clear stake in the ground. Any data center developer that wants certainty about speed-to-market in Pennsylvania must commit to fully paying for their energy needs.”