Governor Josh Shapiro Issues Executive Order 2026-05 Imposing Grid Affordability Standards on Data Centers

HARRISBURG, PA — Governor Josh Shapiro signed Executive Order 2026-05, establishing the Responsible Infrastructure Development (GRID) standards for hyperscale artificial intelligence and cloud computing data centers seeking state energy connections across the Commonwealth.

Protecting Ratepayers from Energy Spikes

The executive order directs the Pennsylvania Public Utility Commission (PUC) and Department of Environmental Protection (DEP) to require data center operators exceeding 50 megawatts of peak capacity to co-locate dedicated on-site nuclear, natural gas with carbon capture, or renewable generation to prevent regional transmission strain on PJM grid markets. Developers must certify that local residential electricity rates will not increase.

Governor Shapiro stated that while Pennsylvania welcomes tech innovation, AI companies must generate their own power and protect working families from electricity price spikes.

Tech Industry Reaction and Utility Framework

Energy utility executives supported the grid stability framework, while technology associations requested streamlined environmental review timelines for advanced microgrids.

The PUC will release the formal draft rulemaking framework for public comment in October 2026.

Compliance Deadlines

All new data center commercial interconnect applications submitted after November 1, 2026, must comply with GRID certifications.