Governor’s Office Unveils GRID Standards for Data Centers: What Developers Need to Know
Pennsylvania took a significant step toward shaping the future of data center development with the release of Governor Josh Shapiro’s Responsible Infrastructure Development (GRID) Standards.
06.16.26
Announced in May 2026, the GRID Standards establish a framework of best practices that data center developers must satisfy in order to access certain state incentives, expedited permitting opportunities and tax benefits. The standards are intended to ensure that large-scale data center projects deliver meaningful economic benefits while addressing concerns related to energy consumption, environmental impacts and community engagement.
The GRID Standards focus on four key areas: energy affordability, transparency and community engagement, workforce and economic development, and environmental protection. From an energy perspective, developers seeking GRID certification must demonstrate how they will meet increased electricity demands without shifting costs onto existing utility ratepayers. Projects are expected to secure incremental generation capacity, incorporate increasing percentages of clean firm energy over time and comply with applicable utility and Public Utility Commission requirements. Certain facilities exceeding 100,000 square feet must also be designed as “solar ready.”
The standards also place a strong emphasis on public engagement and local transparency. Developers must prepare community outreach plans, identify long-term site occupants, hold public meetings beyond those otherwise required by law and provide detailed project footprint information, including anticipated power demand, water consumption, sustainability metrics and energy sourcing strategies. These requirements reflect growing public and municipal interest in understanding the impacts of large-scale data center developments before construction begins.
From an economic development standpoint, projects must commit to substantial capital investment and job creation benchmarks, including construction employment opportunities and permanent jobs with compensation levels tied to statewide wage metrics. Developers are also expected to engage in discussions regarding community benefit agreements addressing issues such as traffic, noise, emergency response planning, visual impacts and local investment priorities.
Environmental protection requirements focus on energy efficiency, water conservation, emissions reductions and habitat protection. Developers must commit to recognized sustainability standards, utilize advanced technologies to reduce resource consumption and implement enhanced environmental safeguards, particularly for projects located in environmentally sensitive areas. Backup power systems are also subject to emissions-related performance standards and operational limitations.
Importantly, developers seeking to participate in the program must obtain a GRID Certificate through a joint application process with the Commonwealth’s Office of Transformation and Opportunity and Department of Revenue. Certification is not a one-time event; projects must submit a pre-operation “GRID Ready Report” and annual compliance reports to maintain eligibility for program benefits.
For developers, investors, utilities and municipalities, the GRID Standards represent an important evolution in Pennsylvania’s approach to attracting data center investment. While the standards are designed to support continued growth in the sector, they also signal the Commonwealth’s expectation that future projects proactively address grid reliability, community concerns, workforce development and environmental stewardship as part of the development process.
The zoning and land use attorneys at Klehr Harrison are actively pursuing entitlements for data center projects throughout Pennsylvania. Our firm will continue to closely monitor ongoing policy and legislative developments, and consider how they may affect pending projects, zoning ordinances, comprehensive plans and long-term development strategies. We will continue to provide updates as more detailed proposals emerge.
Co-authors Matt McHugh, partner, and Leonard Altieri, associate, are members of the zoning & land use practice group at Klehr Harrison.