Pennsylvania Governor Josh Shapiro released his 'Governor’s Responsible Infrastructure Development (GRID) Standards' on Wednesday, imposing new energy and cost requirements on data center developers. The standards require developers to build, bring online, or purchase new electric capacity to meet added energy demand and to cover all costs of associated grid infrastructure upgrades.

Under the GRID Standards, new energy generation must be located in the same grid region as the data center. Developers must also use an escalating share of 'clean firm' energy sources: 10 percent in 2027, 14.5 percent in 2030, and 32 percent in 2035. Shapiro’s office defined 'clean firm' energy as nuclear, hydroelectric, geothermal, fuel cells, solar with storage, wind with storage, clean hydrogen-fueled generation, and long-duration storage resources.

“I’ve heard directly from Pennsylvanians who are concerned about the impact data center development could have on their communities, the environment, and their utility bills,” Shapiro said in a prepared statement. “That’s why I am putting clear guardrails in place to hold developers accountable to protect consumers, strengthen communities, and put Pennsylvanians first.”

John Quigley, former secretary of Pennsylvania’s Department of Environmental Protection and senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, said many provisions around 'bring your own energy' and infrastructure cost responsibility are “a big step in the right direction,” but noted the plan is weakened by Pennsylvania’s divided legislature. Quigley stated that major elements of the GRID program require legislation from the Pennsylvania General Assembly and will not affect host communities until such legislation passes. The Shapiro administration said it would work with legislative leaders to introduce legislation that codifies the GRID Standards into law.

Quigley also questioned whether it is feasible in the short term to require data centers to generate new electricity using natural gas, citing back orders for new gas turbines and increased liquefaction and export of gas overseas. Elizabeth Marx, executive director of the Pennsylvania Utility Law Project, noted that burning more natural gas raises climate concerns and that some advocates propose a 'Bring Your Own New Clean Energy' (BYONCE) policy instead.