The ‘All in on AI’ Governor Backtracks on His Own Policy

Pedro Rodriguez

•   August 21, 2026

Pennsylvania Gov. Josh Shapiro announced a new round of sweeping restrictions on artificial intelligence data centers on Tuesday, marking a swift reversal of his original views on the issue.

“Many politicians and political candidates, noticing growing public opposition to data centers (at least some of it resulting from dark money campaigns against these central features of the American economy), have suddenly switched from support to opposition,” Jay Richards, vice president of social and domestic policy at The Heritage Foundation, told the Daily Signal.

“But none of the facts have changed. This suggests that such politicians are weathervanes whose policies are the result of polling rather than principle. That’s almost certainly the case with Gov. Shapiro,” Richards continued.

Shapiro appeared to have dismissed his previous optimism about data centers and announced major restrictions following public concerns.

A new Gallup poll found that about 71% to 75% of the public opposes the construction of data centers.

In 2025, along with representatives from Amazon, Shapiro announced a $20 billion investment in AI infrastructure that greenlit the construction of two new data centers in Pennsylvania, something the governor said would “power our global economy and the future of artificial intelligence” and create “thousands” of new construction jobs.

At the time, the governor added that the Keystone State was ideally positioned to become a major player in artificial intelligence due to its diverse energy resources, technology-focused universities, and his administration’s 10-year economic development strategy, which he said could help the commonwealth and the nation compete with China in the race to dominate AI.

“We are already all in on AI,” Shapiro stated. “We have the energy resources to support this technology. We’ve got the brains to be able to drive innovation forward. We have the workforce ready to build and maintain these critical data centers.

“We’ve got elected leaders from every single level ready to roll up their sleeves and continue to work together for the common good, for our commonwealth,” the governor continued. “We will out-compete China. We will do so here in Pennsylvania, and we will win.”

On Tuesday, Shapiro signed an executive order cracking down on data centers instead.

“The Governor is also immediately removing all AI data center projects from the PA Permit Fast Track Program and will not consider data center projects for the program going forward,” the governor’s office wrote in a press release.

The executive order also implements new public transparency requirements for developers and makes clear that the use of nondisclosure agreements with data center projects is not permissible, the press release added.

The executive order will additionally incorporate the transparency requirements into the agency’s permit-review process for all data center proposals.

“For developers who do not agree to meet the Governor’s GRID Requirements, DEP will not begin review of permit applications until after all required local approvals are secured and every permit application required for construction of the data center has been reviewed and found to be compliant by DEP,” it further states.

The state’s Department of Revenue updated guidelines for the Computer Data Center Equipment Exemption Program, outlining new requirements for developers.

Under the updated rules, developers must pay the full cost of any new electricity generation, transmission, distribution, and related infrastructure needed to power their projects without shifting those costs to Pennsylvania households and businesses.

The guidelines also require developers to engage transparently with local residents and leaders through detailed outreach plans, including notifying affected local governments, holding public meetings, and seeking meaningful input early in the design process.

In addition, developers must hire and train local workers, enter into community benefit agreements supporting schools, infrastructure, and long-term economic development, and meet the highest environmental standards, including strict water-conservation requirements.

The governor, who is seen by many as a possible Democratic Party presidential candidate in 2028, explained his reasoning for the reversal, which Richards argued was driven by public opinion.

As stated in the release, the governor took “bold action” against data centers following public concerns about the possible negative impacts of data centers on residents’ quality of life.

At a press conference Tuesday, Shapiro called data center developers “predatory.”

“While there are no AI data centers up and running right now in Pennsylvania, and only five have the permits they would need to begin operating,” Shapiro stated, “these speculators are nevertheless scaring our communities, being aggressive with township officials, bullying our neighbors, and refusing to listen to the people of Pennsylvania.”

Shapiro did not respond to the Daily Signal’s request for comment

Pedro Rodriguez
Pedro Rodriguez | Journalism Fellow
Pedro Boccalato Rodriguez-Aparicio is a journalism fellow at the Daily Signal.

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