Shapiro Announces Governor’s Responsible Infrastructure Development (GRID) Standards Affecting Large-Scale Infrastructure Projects, including Data Centers
Governor Josh Shapiro has been a major proponent of data center development in the Commonwealth, going so far as to proclaim that Pennsylvania is “All in on AI” when Amazon announced a planned $20 billion investment to build two data centers. In his fourth budget address last Tuesday, however, Governor Shapiro emphasized that Pennsylvania will take a more deliberate approach to future development, stressing that the state must be selective about the projects that move forward in local communities. To that end, the Shapiro Administration has introduced the Governor’s Responsible Infrastructure Development standards (GRID), which establish clear expectations for large-scale infrastructure projects, including data centers.
02.12.26
Public and private sector officials alike have sought to position Pennsylvania as a major AI hub, with U.S. Senator Dave McCormick recently announcing more than $90 billion of private investment in energy- and AI-related projects across the state.
In his fourth budget address last Tuesday, however, Governor Shapiro emphasized that Pennsylvania will take a more deliberate approach to future development, stressing that the state must be selective about the projects that move forward in local communities. To that end, the Shapiro Administration has introduced the Governor’s Responsible Infrastructure Development standards (GRID), which establish clear expectations for large-scale infrastructure projects, including data centers.
“If companies adhere to these principles, they will unlock benefits from the Commonwealth, including speed and certainty in permitting and available tax credits,” Shapiro added.
The GRID framework is built on four core principles intended to balance innovation with accountability:
- Protecting Energy and Water Resources. Developers must bring their own power generation online or fully fund new generation to meet project demands, without increasing energy costs for homeowners or businesses. Projects must also comply with the highest environmental protection standards, including strict water conservation requirements.
- Transparency and Community Engagement. Developers are expected to engage openly and transparently with local residents and elected officials. Communities must be informed about who is developing a project, what is being built and how it may impact the municipality before development proceeds.
- Delivering Local Jobs and Community Benefits. Projects must prioritize hiring and training local workers and commit to meaningful community benefit agreements that support local needs, including schools, infrastructure and long-term economic development.
- Responsible Growth with Accountability. Only projects that meet the GRID standards will receive the Commonwealth’s full support, including streamlined permitting and access to available incentives, reinforcing the Administration’s focus on responsible and values-driven development.
Developers, investors and companies pursuing data center, energy or other large-scale infrastructure projects in Pennsylvania should expect increased scrutiny and should proactively plan to meet the GRID standards early in the project lifecycle. Compliance with these principles will be critical to securing state support, incentives and permitting certainty.
The zoning and land use attorneys at Klehr Harrison are actively pursuing entitlements for data center projects throughout the Commonwealth of Pennsylvania. Our firm will continue to monitor ongoing developments related to the GRID standards and their implementation and is available to assist clients in navigating these evolving requirements.
Co-authors Matt McHugh, partner, and Leonard Altieri, associate, are members of the zoning & land use practice group at Klehr Harrison.