Gov. Josh Shapiro has released the Commonwealth’s updated Governor’s Responsible Infrastructure Development (GRID) standards for data center projects seeking state support, including coordinated project assistance, expedited permitting through the PA Permit Fast Track Program, and access to certain tax benefits.

The standards are framed around four areas: energy affordability, transparency and community engagement, workforce and economic development, and environmental protection. According to the administration, projects that meet the standards may receive GRID certification through a joint review by the Office of Transformation and Opportunity and the Department of Revenue.

• Under the energy affordability standard, developers are expected to show how a project’s electricity demand would be met without shifting costs to existing residential or business ratepayers, including plans related to incremental electric capacity and associated infrastructure needs.
• Under transparency and community engagement, developers are expected to provide information about project scale, anticipated peak demand, and local outreach, including public engagement and disclosures related to the proposed facility.
• Under workforce and economic development, the standards call for commitments related to construction jobs, workforce participation, and projected economic and community benefits tied to the project.
• Under environmental protection, developers are expected to address issues such as water use, energy efficiency, emissions, and other mitigation measures associated with facility construction and operation.
• The administration is also seeking to tie eligibility for the existing computer data center equipment sales and use tax exemption to GRID certification, and the standards contemplate initial certification, a pre-operations compliance report, and annual reporting to maintain that status.

Responsible data center investment represents a transformational economic opportunity for Pennsylvania to attract high-quality careers, strengthen local tax bases, and improve quality of life. Realizing that opportunity requires balancing innovation and investment with oversight and meaningful community engagement. The business community supports the Governor’s overarching pillars – protecting energy affordability, promoting transparency and community engagement, supporting workforce and economic development, and strengthening environmental protection – and believes we can accomplish these goals without stifling investment and making Pennsylvania less competitive.

As this conversation moves forward, decisions should be guided by facts, long-term competitiveness, and thoughtful engagement between companies and communities. Through the continued statewide educational efforts of our Energy & Innovation Institute and our ongoing advocacy work, we look forward to continuing to engage with the Governor, General Assembly, and communities across the Commonwealth to ensure Pennsylvania is well-positioned to compete for and support responsible data center investment.