Last week, Governor Josh Shapiro released the Governor’s Responsible Infrastructure Development (GRID) Standards, an initiative aimed at establishing best practices and standards that data center developers must comply with to receive Commonwealth support. The new standards appear to support local decision-making and municipal rules designed to reduce impacts from proposed data center development and improve transparency and community engagement. Legislation will be needed to implement the new rules, which is expected to be negotiated in the coming weeks as part of the budget process.  

This initiative requires any a developer intending to receive a “GRID Certification” to apply to the Office of Transformation and Opportunity (OTO) and the Department of Revenue detailing how they will meet four standards: protecting energy affordability, promoting transparency and community engagement, supporting the workforce and economic development (which includes a Community Benefit Agreement), and protecting the environment. GRID Certification would make the project eligible to participate in OTO’s PA Permit Fast Track Program, authorize data center developers to receive a sales tax exemption on the purchase of computer equipment, and allow participation in existing preferential tax zone programs. Click here for the governor’s press release.