Democratic Pennsylvania Gov. Josh Shapiro took sweeping action Tuesday to curb data center development across the commonwealth, signing an executive order aimed at reining in aggressive tech firms and curbing speculative proposals that have drawn fierce local resistance.

The executive order marks a significant policy pivot for the Democratic governor — frequently discussed as a potential 2028 presidential contender — who had previously championed data center expansion as a pillar of economic growth and artificial intelligence (AI) leadership.

Under the new order, all data center projects must secure local approval before proceeding and are permanently removed from Pennsylvania’s fast-track permitting process.

Developers will no longer be allowed to use non-disclosure agreements (NDAs) to keep municipal negotiations hidden from the public. Furthermore, developers must sign a legally binding agreement committing to self-fund their power infrastructure, prioritize local hiring, maintain transparency, and follow strict water conservation rules.

Speaking at a news conference, Shapiro criticized “predatory” developers and “bad proposals” threatening municipal autonomy.

“I’ve heard loud and clear from the good people of Pennsylvania as I’ve traveled our commonwealth, and I’m here to say today that we will not be bullied by these developers,” Shapiro said. “We have a long history in Pennsylvania of industry running roughshod over our communities to make a buck—that stops with me.”

Shapiro noted that while Pennsylvania previously embraced major Amazon.com Inc.-backed projects, the state has since been swamped by speculative proposals led by developers showing little regard for local sentiment.

Citing a controversial proposal in his home county of Montgomery, Shapiro declared himself a “hell no” on that development and several others like it across the state. He attributed his evolving stance directly to feedback from residents concerned about local grid reliability, environmental impacts, and skyrocketing utility bills.

The move comes amidst a nationwide bipartisan recalibration surrounding data center expansion. Across the country, state leaders are facing mounting voter anxiety over the massive energy and water demands required to power AI infrastructure.

In recent weeks, New York Gov. Kathy Hochul enacted a temporary moratorium on new developments, while Texas Gov. Greg Abbott paused audits on pending projects.

The issue has quickly spilled into midterm campaign debates, forcing candidates to navigate the line between local environmental protection and technological investment. At the federal level, the rapid expansion of AI infrastructure remains a key priority for President Donald Trump’s economic agenda, which has promoted a Ratepayer Protection Pledge to ensure tech companies shoulder the financial burden of new energy production.

Industry representatives contend that the rapid pace of development has led to widespread misunderstandings regarding environmental impacts. The Data Center Coalition emphasized that tech facilities offer long-term economic investments, including job creation, tax revenue, and potential property tax relief for local municipalities.

Addressing reporters, Shapiro defended his shift, noting that out of roughly 100 proposed sites causing community friction, only about five have received permits to move forward. He emphasized that the order establishes clear “rules of the road,” placing final authority back into the hands of local communities.