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Pennsylvania Gov. Says Data Centers Must Bring Own Generation In Order To Receive Support, Tax & Other Benefits From State
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The administration of Pennsylvania Gov. Josh Shapiro released the Governor's Responsible Infrastructure Development (GRID) Standards for data centers, which are principles which data center projects must meet to merit the Commonwealth’s support through mechanisms such as fast track permitting and favorable tax treatment
Data center projects meeting the administration's standards would be provided with a GRID Certificate, and would be designated as GRID projects
Among other things, designation as a GRID project would make the data center project eligible to participate in the state's PA Permit Fast Track Program, and would authorize sales and use tax benefits for the purchase of computer data center equipment, and would allow participation in preferential tax zone programs
Most notably, in order to receive GRID designation, a data center project must, "Build, bring, or buy incremental electric capacity needed to meet its new energy demands, matching the GRID project’s ramp schedule and paying the full cost of that capacity, which must be from new or otherwise incremental electric generation, located within the same PJM Locational Deliverability Area (LDA) as the proposed GRID Project[.]" Additionally, the GRID project must include the following percentages from "clean firm" energy: beginning January 1, 2027, 10%; beginning January 1, 2030, 14.5%; and beginning January 1, 2035, 32%.
Also notable is that, for eligibility as a GRID project, the data center project must, "Pay, whether through base rates, surcharges, or another ratemaking mechanism, all costs caused in whole or in part by the interconnection, service, or load of a GRID Project, including any costs associated with energy and ancillary services," if either or both of the following applies (1) The cost is directly applicable to the provision of electric service to the GRID Project; or (2) The cost would not have been incurred but for the electricity demand of the GRID Project.
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May 28, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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