Pennsylvania Governor Josh Shapiro on Tuesday introduced a new set of conditions for data center construction in the state, a move that has drawn sharp criticism from free-market advocates who see it as a concession to progressive pressure groups. The rules mandate that any new facility secure local community backing, source power from clean energy, and commit to hiring local workers, among other requirements.
Shapiro, a moderate Democrat who has previously championed fast-tracked data center development, framed the changes as a balanced approach. In a statement, his office emphasized that the new criteria are designed to ensure that data centers are good neighbors and contribute to local economies. The governor's supporters note that he has not imposed an outright ban, unlike some on the left who have called for a moratorium.
However, critics argue that the new requirements are so burdensome that they will effectively grind new projects to a halt. "This is a classic government slowdown tactic," said Robby Soave, a senior editor at Reason Magazine and co-host of The Hill's commentary show "Rising." In his daily commentary, Soave warned that the approval process, already notoriously slow, will become nearly impossible to navigate.
The announcement comes amid a broader national debate over the environmental and social impact of data centers. Progressive groups have pushed for stricter oversight, citing concerns about energy consumption, water usage, and community disruption. Some have even called for bans, a position that Shapiro has explicitly rejected.
Soave acknowledged that some of the new measures have merit. "Obviously, it's ideal for local communities to want them, and for tech backers to sell the people on them," he said, adding that data centers should pay for their own utility costs and that tax revenue from these facilities could be used to lower taxes for residents, as has been done in Loudoun County, Virginia, the nation's data center hub.
But he argued that the labor and environmental conditions are "totally arbitrary and impossible-to-satisfy," and that they will only serve to delay projects. "The reason Pennsylvania and Shapiro have previously been so pro data center is that he believed in moving fast to approve these things," Soave said. "Now we're gonna have to go slow — real slow — because the pace of government approval is not so great."
Soave also linked the issue to broader geopolitical concerns, suggesting that hampering data center growth could benefit adversaries like China. "It's a major scandal that every time the government actually wants to accomplish something, it has to waive all the laws and requirements and regulations that are in place to get it done," he said.
Despite the controversy, Shapiro's office insists that the new rules are necessary to ensure responsible development. The state has seen a surge in data center proposals in recent years, and officials say the new framework will help balance growth with community interests.
For now, the policy has energized both supporters and opponents. Progressive groups have praised Shapiro for taking a cautious approach, while business advocates warn that Pennsylvania risks falling behind other states in the race to attract tech infrastructure. The debate is likely to continue as the state begins implementing the new rules.
