Gov. Josh Shapiro spent months preparing a set of standards he promised would “hold data center developers accountable.”
But behind the scenes, top Shapiro administration aides were drafting the framework with the input of Amazon and the powerful data center lobby and sharing early drafts with company officials before making them public, records show.
The emails, first reported by climate change media outlet HeatMap earlier this year and obtained by an anti-data center activist in Montour County through the state’s open records law, show a cozy relationship between Shapiro’s administration and data center developers. But they also show the role the technology giants played in influencing the final version of Shapiro’s guardrails — though that influence only went so far.
Shapiro in May introduced the initiative as the Governor’s Responsible Infrastructure Development, or GRID, which are a set of transparency and environmental standards data center developers would need to meet to access state tax breaks and other incentives Shapiro asked the General Assembly to write into law. The Democratic-controlled state House approved these standards, but it’s stalled in the GOP-controlled Senate, as legislators struggle to find common ground on one of the most hot-button issues facing them today.
A spokesperson for Shapiro said the administration consulted numerous stakeholders as part of the drafting of the policies, including the Pennsylvania Building & Construction Trades Council, the Pennsylvania Environmental Council, the Natural Resources Defense Council, and more. Data center development is supported by many building trade unions across the state, which are likely to benefit from the major projects.
Environmental groups broadly support Shapiro’s proposal and want stronger regulations on data center projects. Some groups want to ensure the provisions are mandatory, instead of voluntary, as Shapiro proposed.
“As finalized, the Governor’s GRID standards set firm guardrails to protect Pennsylvania communities and hold data center developers accountable to strict standards requiring them to take additional action to ensure Pennsylvania communities benefit — and are not harmed — by these projects,” said Rosie Lapowsky, Shapiro’s press secretary, in a statement.
Shapiro, a Democrat seeking reelection this year and a possible 2028 presidential contender, has remained data-center friendly and emphasized that Pennsylvania should play a core role in the “battle for AI supremacy.”
But he has sharpened his rhetoric in recent months, citing his own personal evolution on the issue, as public opinion has also shifted with roughly 76% of Pennsylvanians across party lines opposing the projects.
“Too many of these projects have been shrouded in secrecy, with local communities left in the dark about who is coming in and what they’re building,” Shapiro said in his budget address in February.
Yet as other states like New York have put moratoriums on data center development, Shapiro has chosen to fast-track permits and support tax breaks to incentivize the massive projects, though he now believes they should meet certain voluntary standards.
Amazon has already committed to a $20 billion investment in Pennsylvania — the biggest investment in state history — to build two data center campuses in Luzerne and Bucks counties and will access the state’s sales tax exemption for data centers as approved by the General Assembly in 2021.
The Data Center Coalition — the powerful industry group made up of data center developers like Amazon, Google, Anthropic, OpenAI, and Microsoft — shared feedback on several drafts of Shapiro’s GRID principles and approved of most of its measures. But the industry still has “some significant concerns” with the voluntary program, including its clean energy provisions requiring certain percentages of its power to be from low- or zero-carbon sources.
Dan Diorio, the Data Center Coalition’s executive vice president of state policy and government affairs, described the proposed GRID program’s requirements to access tax breaks as “extensive” compared to the 37 other states that offer sales tax exemptions.
“We look forward to continuing to work with the legislature and the governor’s office on outlining what would ensure Pennsylvania remains a strong and competitive data center market,” Diorio said.
Fengqi You, an energy systems engineering professor at Cornell University and data center expert, said it’s best practice for governments to consult all stakeholders, including industry leaders. But data center developers and local communities have opposing viewpoints that must be balanced, he said.
“The right model, in my view, is to consult widely all the stakeholders, decide independently, and disclose transparently,” You said. “The standards are only as strong as the conditions and the consequences.”
But some of the conditions should not be voluntary incentives, like Shapiro proposed, You said. This has been echoed by some environmental and anti-data center groups, which argue that the provisions don’t go far enough if compliance is ultimately voluntary for the tech giants.
“It’s a useful starting point, but the incentive conditions should not substitute a minimum public protection for all,” You said. “If a company is receiving a tax exemption, then the state should have every reason to attach some very strong public interest conditions.”
‘Not ban or discourage data centers’
Ahead of Shapiro announcing his plans for GRID as part of the state budget address, Shapiro administration officials went further in their efforts to reassure companies like Amazon, which they’ve courted for years, records show.
In a Feb. 3 email, Department of Community and Economic Development Secretary Rick Siger wrote to Amazon Web Services staff that Shapiro would not “ban or even discourage data centers” and that “this new approach will not look back at projects or agreements already in place.”
Other emails, sent in March by Sam Robinson, a deputy chief of staff to Shapiro, request that Amazon and the Data Center Coalition submit their feedback and mark up drafts. Shapiro’s administration declined to share those earlier feedback drafts.
Legislators in Pennsylvania’s split General Assembly did not write Shapiro’s GRID proposal into law as part of this year’s $50.8 billion budget deal, and only enacted one new data center requirement despite near-unanimous support to repeal tax breaks for the projects. Shapiro now says he’s “considering all executive actions” he can do without the legislature.
Colby Wesner, a pediatrician in Montour County, received troves of emails from top Shapiro administration officials, top Amazon staff, and more as part of several Right-to-Know Law requests he submitted to find out more about a now-blocked project near his home.
“It’s a really insincere attempt,” Wesner said of the GRID principles. “It’s a public relations stunt.”
Now that Shapiro is considering acting on his own, Wesner said he wants to know whether Shapiro will add restrictions or continue to welcome the projects into Pennsylvania.
“Maybe he is listening to constituents and an executive action will demonstrate that he is listening to citizens,” Wesner added. “If it is, then great for him. But to date, everything he has done has been pro-data center industry.”
Amazon , for its part, declined to comment on its role in the drafting of the GRID principles, which, if approved, would not apply to their ongoing projects. Becky Ford, a principal for global infrastructure expansion at Amazon Web Services, replied to Robinson on March 18 that they “look forward to providing feedback.”
“We’re committed to being good neighbors in the communities where we build and operate, and will continue working with state and local leaders to invest responsibly and to keep creating good jobs across the Commonwealth,” an Amazon spokesperson said in a statement.
