Governor's Responsible Infrastructure Development (GRID) Standards (Pennsylvania) is sponsored by Commonwealth of Pennsylvania (Department of Revenue and Office of Transformation and Opportunity). This is a state-level initiative in Pennsylvania that ties tax benefits for data center developers to specific sustainability standards.

The Governor's Responsible Infrastructure Development (GRID) Standards - PA Department of Community & Economic Development 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: Transparency and Community Engagement, Workforce and Economic Development, and Environmental Protection.

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: Beginning January 1, 2027, 10%.

Beginning January 1, 2030, 14. 5%. 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. 2. Transparency and Community Engagement GRID Certification .

In its joint application for a GRID Certificate, a project developer must provide a community outreach plan for review including the following elements to promote public engagement and transparency: The name of the entity or entities that will occupy the physical site of the GRID project on a permanent basis during ongoing operations following construction.

A commitment to notify all potentially impacted local governments of the project, hold public meetings, and consult with municipal leaders at a sufficiently early stage of the project to enable meaningful public input on key project design decisions directly impacting the public (such as site, viewshed impact mitigation, noise impact mitigation, and building facade design).

A detailed timeline and number of public meetings the developer will hold to inform the community about the project in addition to meetings required by statute or regulation as part of the local zoning and environmental permitting processes, as well as features of those meetings which will make them convenient and accessible to the public.

In addition, the project shall provide a footprint report, detailing the GRID project’s planned: Building size in square feet, and campus acreage; Any energy generation or storage facilities that will be co-located with the GRID Project.

Estimated final peak electric demand; Estimated annual water consumption and the source of water to be used for consumption; Waste and/or Treated Water discharges, if any; Percentage of electricity used from non-emitting sources and how that electricity will be procured (e.g., generated on-site, provided by Power Purchase Agreement, or claimed through the purchase of clean energy credits); Expected average annual Power Usage Effectiveness (PUE); and Expected average annual Water Usage Effectiveness (WUE).

GRID Ready Report . Prior to commencing commercial operations, a GRID project must submit a GRID Ready Report for review containing updates to the items required in the footprint report and demonstrating that it implemented its community outreach plan. Annual Renewal .

To retain a GRID Certificate after commencing commercial operations, a GRID project must annually submit documentation for review with any updates to the items required in the footprint report. 3. Workforce and Economic Development GRID Certification .

In its joint application for a GRID Certificate, a project developer must submit an initial community benefit plan for review that details the GRID project’s anticipated contributions to the local economy and workforce, beyond existing local, county, and school district legal obligations, including: Make at least $250,000,000 of cumulative new investment; Create at least 200 jobs during the construction phase of development, each paying the applicable prevailing minimum wage and benefit rates; and On or before the fourth anniversary of certification, create 50 new jobs each paying at least 125% of Pennsylvania’s average statewide wage; and Pay annual compensation of at least $1,500,000 to employees at the certified computer data center site for each year of the certification after the fourth anniversary.

A hiring plan for recruiting and training local workers, including provisions encouraging or facilitating local workforce participation in site preparation and construction, including the use of registered apprenticeship programs and skilled construction labor.

A commitment to engage in good faith discussions with the jurisdiction in which the GRID project will be located to develop a community benefit agreement addressing the following subjects, unless the local jurisdiction elects to waive any requirement based on local circumstances: Detail about planned development phases; Noise and lighting study requirements and mitigation techniques; Air quality protection requirements consistent with existing state and federal law; A plan for addressing aesthetic concerns, including landscaping or visual buffers; An emergency management evaluation addressing training, coordination protocols, and reasonable resource needs for the host jurisdiction’s first responders; Financial contributions towards local priorities; and Annual reporting to the local jurisdiction on progress in implementing the local benefit plan.

GRID Ready Report . Prior to commencing commercial operations, a GRID project must submit a GRID Ready Report for review demonstrating that it has met the investment and construction job creation commitments of its community benefit plan, and providing its community benefit agreement, or the status of discussions. Annual Renewal .

To retain a GRID Certificate after commencing commercial operations, a GRID project must annually submit documentation for review demonstrating that it is complying with the permanent job commitments of its community benefit plan and is complying with its community benefit agreement where applicable. 4. Environmental Protection GRID Certification .

In its joint application for a GRID Certificate, a project developer must submit an initial sustainability plan for review detailing: How it will deploy leading technologies to limit water and energy consumption by the data center, through certification under one or more of the following standards: LEED for Data Centers at Gold Level or higher; ISO 50001 Energy Management and ISO 14001 Standard for Environmental Management Systems; or Other equivalent standards as approved by OTO.

Commitment to minimize local air pollutants by utilizing a backup energy system that relies on zero-emission energy storage (preferred), or Backup generators that meet or exceed Tier 4 emissions standards, and operational practices which may include reduced generator runtime commitments and enhanced emission controls that materially reduce emissions; Backup generators that meet or exceed Tier 2 emissions standards and are equipped with a selective catalytic reduction system or another emissions control system that more stringently reduces nitrogen oxides, where applicable; and commitments to limit backup generation utilization only to emergency use and limited testing and maintenance consistent with federal and state air quality laws and regulations.

For GRID projects located in the watershed of a “High Quality/Exceptional Value Water,” or within an area identified as “Pennsylvania Climate Change Connectivity,” the developer shall commit to engage in good faith efforts to collaborate with private conservation and public resource entities to support and fund the monitoring of impacts to land, water, and biological resources, and provide an explanation of defined measures (such as on-site, off-site, or mitigation banking) to be taken to minimize and ameliorate impacts on wildlife habitat or offset net loss of habitat and ecological function in addition to all existing regulatory and permitting requirements.

GRID Ready Report . Prior to commencing commercial operations, a GRID project must submit a GRID Ready Report for review containing any updates to its sustainability plan, and the status of compliance with its sustainability plan commitments. Annual Renewal .

To retain a GRID Certificate after commencing commercial operations, a GRID project must annually submit documentation for review demonstrating compliance with its sustainability plan commitments.

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.