Pennsylvania Governor Josh Shapiro has taken a firm stance against data center developers who he believes are disregarding the communities where they propose to build artificial intelligence (AI) infrastructure. This stance comes amidst a growing wave of public opposition to such projects nationwide, creating a significant political and regulatory challenge for the burgeoning AI sector.
Speaking on CNBC’s “Squawk on the Street,” Governor Shapiro articulated his vision for responsible development, stating, “The reality is, I want CEOs that give a damn about the community where they’re going to be.” His comments followed remarks by former President Donald Trump, who suggested that opposition to AI data centers stemmed from a desire to remain “backwards and poor.” Shapiro, however, countered this by emphasizing the need for corporate responsibility, asserting, “Unfortunately, we’ve seen too many developers who don’t care about our communities, who are trying to run roughshod over our communities, and those are the kinds of data center projects we don’t want here.”
Governor Shapiro, widely seen as a potential contender for the 2028 Democratic presidential nomination, has implemented a new executive order aimed at reining in unchecked data center expansion. Signed on August 18th, this order mandates that all new data center proposals adhere to the Governor’s Responsible Infrastructure Development (GRID) Requirements. Crucially, it also removes AI data center projects from the state’s expedited approval program. Shapiro has declared these requirements to be “the most stringent in the entire country,” warning developers, “If you don’t follow these requirements, then you shouldn’t plan to do business here.”
The governor elaborated on the practical implications of his executive order, stating that developers must now “earn local support before you can even come to the state for permitting.” He further outlined key stipulations: “No. 2, you’ve got to generate your own power, and you’ve got to pay for the power. You can’t saddle local homeowners and businesses with that. No. 3, you’ve got to protect our water supply and our air quality.” He stressed that these are “common sense” measures that developers are now legally obligated to uphold.
Shapiro’s executive order places Pennsylvania among a growing number of states grappling with public backlash against data centers. These facilities, essential for housing the powerful computing hardware required to train and operate AI models, are drawing criticism for their substantial energy consumption, potential impact on utility costs, and strain on local water resources. This has transformed data center development into a potent political issue ahead of upcoming congressional and state elections.
This new regulatory approach marks a significant shift from Shapiro’s previous stance. In June 2025, he had enthusiastically promoted Amazon’s announcement of a $20 billion investment in two data center complexes in Pennsylvania, calling it the largest private investment in state history. At the time, he told CNBC’s “Squawk Box,” “Pennsylvania is going to be better off. I think America is going to be better off because we’re going to win the battle of AI supremacy and it’s going to be done right here in the Commonwealth of Pennsylvania.”
Shapiro’s Republican challenger, State Treasurer Stacy Garrity, has criticized the executive order as a “damage control” maneuver. In a video released following the order’s announcement, Garrity accused Shapiro of “rolling out the red carpet for massive data center development” and pledged to “pause data center development in Pennsylvania” if elected. However, Garrity’s own past statements reveal a more complex perspective. In a radio interview a year prior, she lamented that “Ohio is kicking our butt” in data center development, suggesting Pennsylvania could be “doing so much more in that space.”
The public sentiment appears to align more closely with Governor Shapiro’s current concerns. A Gallup survey released in May indicated that “seven in 10 Americans oppose constructing data centers for artificial intelligence in their local area.” This widespread opposition is not lost on national political strategists. The National Republican Senatorial Committee issued a memo warning that voter backlash to data centers could imperil Republican candidates, citing Senator Jon Husted of Ohio as a potential casualty.
Amidst this contentious landscape, David Sacks, co-chair of the President’s Council of Advisors on Science and Technology, offered a more optimistic outlook on “Squawk on the Street.” He suggested that a “good deal can be made” between communities, data centers, and AI companies through effective education. Sacks argued that by informing the public about how data centers can lower electricity costs, fund grid upgrades, and utilize water efficiently through recirculation, public opinion can shift. “When you actually educate them about the issue, the poll numbers change dramatically, and you’ll see that a majority of voters will actually support data centers,” Sacks asserted.
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