The Governor's Responsible Infrastructure Development (GRID) Standards

As announced during Governor Shapiro’s 2026-27 Budget Address, the Governor’s Responsible Infrastructure Development (GRID) Standards establish best practices that data centers must comply with to receive support from the Commonwealth. These Standards represent metrics of success to use in evaluating whether proposed data center projects would provide real value to the local community, are mitigating or offsetting their impacts, and are being developed in a responsible manner. They are also a benchmark for data center developers to demonstrate that they are doing right by Pennsylvania communities and merit the Commonwealth’s support. Standards focus on four key areas:

  1. Energy Affordability,
  2. Transparency and Community Engagement,
  3. Workforce and Economic Development, and
  4. Environmental Protection.

Fast Track Intake Form

To demonstrate entitlement to the benefits available under the GRID Standards, project developers must submit a joint application to the Commonwealth’s Office of Transformation and Opportunity (OTO) and Department of Revenue (DOR) through the OTO’s Fast Track Intake Form, that explains the specific steps that the developer commits to take to adhere to the GRID Standards in each of the four areas.

OTO and DOR will review the application, and if it qualifies, will issue the project a GRID Certificate, making the project eligible to participate in OTO’s PA Permit Fast Track Program, authorizing sales and use tax benefits for the purchase of computer data center equipment, and allowing participation in preferential tax zone programs. Then, prior to commencing commercial operations, a GRID project must provide OTO and DOR a GRID Ready Report demonstrating compliance with the GRID Standards. Finally, in order to maintain its GRID Certificate after commencing operation, the GRID project must file annual reports demonstrating its continued compliance.

What Are the GRID Standards

The GRID Standards, and the process of obtaining and maintaining the GRID Certificate, are described in the accordion below.

GRID Certification. In its joint application for a GRID Certificate, a project developer must submit an initial energy plan detailing how it will provide for its energy needs without imposing additional costs on other utility ratepayers.

In that plan, the developer must agree to:

  • 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 and include the following percentages from clean firm energy:
    1. Beginning January 1, 2027, 10%.
    2. Beginning January 1, 2030, 14.5%.
    3. Beginning January 1, 2035, 32%.
  • 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, transmission, distribution, network upgrades, or other facilities if either or both of the following applies:
    • The cost is directly applicable to the provision of electric service to the GRID Project; or
    • The cost would not have been incurred but for the electricity demand of the GRID Project.
  • Design and construct any GRID project facility with a floor area exceeding 100,000 square feet in a “solar ready” manner that facilitates and optimizes the installation of solar photovoltaic panels on unoccupied roof area of the building or other areas of the building.
  • Submit all applicable filings to the Pennsylvania Public Utility Commission (PUC) and adhere to all relevant PUC regulations and tariffs governing commercial data centers, and attest that it follows all existing statutory reporting, certification and documentation requirements under current law regarding credit and zone programs.

GRID Ready Report. Prior to commencing commercial operations, a GRID project must provide a GRID Ready Report for review with any updates to its energy plan and confirm that any changes have not imposed additional costs on other utility ratepayers.

Annual Renewal. To maintain a GRID Certificate after commencing commercial operations, a GRID project must annually confirm that any changes to its energy plan have not imposed additional costs on other utility ratepayers.

 

Find More Data Center Resources

If you are an elected official, municipality, or economic developer navigating data center proposals in your community, the Pennsylvania Data Center Planning Toolkit provides guidance on evaluating projects, understanding infrastructure and fiscal impacts, navigating zoning and legal considerations, and engaging community stakeholders.

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