Under the new rules, developers must sign legally binding agreements to pay for their own power, prioritize local hiring, and follow strict water-conservation standards.
This policy shift follows a surge in speculative proposals that the Governor claims have overwhelmed local communities.
By ending fast-track permitting, the state is slowing the expansion of AI infrastructure—the physical facilities housing the computer systems required for artificial intelligence—to address public concerns regarding rising electricity costs and environmental impacts.
The order aims to prevent developers from bypassing community input, moving Pennsylvania toward a more restrictive model similar to recent moratoriums or pauses enacted in states like New York and Texas.
The new mandate affects approximately 100 pending proposals that Shapiro characterized as speculative or disruptive.
To move forward, these developers must now demonstrate transparency with local governments and adhere to guidelines originally introduced in February.
While the industry argues that these facilities provide significant tax revenue and long-term investment, the Governor stated that these measures are necessary to ensure that tech companies do not fundamentally alter the character of Pennsylvania communities or burden residents with infrastructure costs.