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Penn. Gov. Shapiro says too many data center developers 'don't care about our communities'

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Why This Matters

Pennsylvania Governor Josh Shapiro emphasizes the importance of responsible community engagement by data center developers, especially as AI infrastructure projects face growing opposition. His administration's strict regulations aim to ensure that development aligns with local interests and sustainable growth, setting a precedent for the industry. This highlights the increasing demand for tech companies to prioritize community impact amidst rapid AI expansion.

Key Takeaways

Pennsylvania Gov. Josh Shapiro said Tuesday that "too many" data center developers don't care about the communities where they are building those artificial intelligence-sector projects, which have met with growing opposition nationwide.

Shapiro's comments to CNBC's "Squawk on the Street" came a day after President Donald Trump said the only reason American communities should not want AI data centers "is if they want to end up being backwards and poor."

"The reality is, I want CEOs that give a damn about the community where they're going to be," said Shapiro, who appeared on CNBC with Chobani CEO Hamdi Ulukaya to talk about the Greek yogurt maker's planned $1.2 billion investment in a new Lehigh Valley, Pennsylvania, dairy manufacturing hub.

"Unfortunately, we've seen too many developers who don't care about our communities who are trying to run roughshod over our communities, and those are the kinds of data center projects we don't want here," Shapiro said. "We want to work with people that want to work with local communities."

The governor, who is considered a potential contender for the 2028 Democratic presidential nomination, on Aug. 18 signed an executive order aimed at controlling data center development, mandating that any proposals for centers comply with the Governor's Responsible Infrastructure Development (GRID) Requirements, and removing all artificial intelligence data center projects from a fast-track approval program.

"This executive order represents the most stringent requirements in the entire country," Shapiro said when he signed the order. "And my word to developers is you better follow these requirements. Otherwise you shouldn't plan to do business here."

Shapiro's order came as he seeks re-election as governor against Republican nominee, state Treasurer Stacy Garrity.

He cited that order during his appearance with Ulukaya on Tuesday.