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Pa. 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 in data center development, especially for AI projects, highlighting concerns over developers neglecting local interests. His administration's strict regulations aim to ensure that infrastructure growth benefits communities and aligns with responsible development standards. This stance reflects a broader push within the tech industry to prioritize ethical and community-conscious expansion amid rising opposition to large-scale data projects.

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, or GRID, Requirements, and removing all AI 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 reelection as governor against the Republican nominee, state Treasurer Stacy Garrity.

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