Has NIMBYism Saved Data Centers in Pennsylvania?

    TL;DR: Governor Josh Shapiro spent 2025 promoting data centers. In 2026 he is restraining them. According to Inside Climate News , he went in about 20 months from introducing a fast track permitting …

    ·5 min read
    Reviewed by Jeff Barnes — CEO of Angel Investors Network · MBA · $1B+ in Capital Formation
    TL;DR: Governor Josh Shapiro spent 2025 promoting data centers. In 2026 he is restraining them. According to Inside Climate News, he went in about 20 months from introducing a fast-track permitting process that invited hyper-scale data centers to kicking them out of the program.

    That reversal is the news. The Philadelphia Citizen asks whether local opposition has actually saved anything, or only changed the terms.

    What did Shapiro actually change?

    He removed data centers from the state's accelerated permitting track. According to Technical.ly, the executive order removed data centers from the Permit Fast Track Program and put new conditions on how developers can move forward, and the program itself dates to November 2024.

    Inside Climate News puts the speed of the turn at about 20 months, from inviting hyperscale projects to "move at the speed of business" to kicking them out of the program.

    The change is narrower than it sounds. It removes a shortcut. It does not ban a single project.

    StepWhat happenedSource
    November 2024Shapiro launches the PA Permit Fast Track ProgramTechnical.ly
    June 2025Shapiro announces Amazon's planned $20 billion investmentInside Climate News
    2026Executive order removes data centers from Fast Track and adds conditionsTechnical.ly

    Is the opposition strong enough to stop projects?

    In some places, yes. The Cooper Square reports that Archbald borough council members voted unanimously to deny a data center campus application despite an offer of a $17 million benefits deal and $40 million in annual tax revenue. A town turned down money.

    Zoning decides who wins these fights. The same report describes Clinton Township in Wayne County, an unzoned municipality where residents protesting a $6 billion, 20-building campus could only rely on the township's Subdivision and Land Ordinance, a tool that regulates how land is developed but can't dictate what can be developed where. The township of about 2,000 is now gearing up for an expensive legal fight.

    Developers are also paying for goodwill. After local backlash, the developer NorthPoint sent letters to every resident of Hazle Township offering $10,000 payments once the first building received a certificate of occupancy, according to The Philadelphia Citizen.

    What do the polls say about data centers?

    They disagree, because they ask different questions in different places. A December 2025 Emerson College poll of Pennsylvanians, as reported by Inside Climate News, found 38 percent in favor of data center construction, 35 percent opposed and 27 percent unsure or neutral. That is a plurality in favor, not a revolt.

    Nationally the mood is harsher. POWER Magazine reports that half of Americans now oppose a data center built within three miles of their homes, compared with 28% in January, according to The POLITICO Poll.

    The dates and wording differ, so the figures can't be lined up against each other.

    Does the state still subsidize data centers?

    Yes. Pennsylvania eliminates the 6% sales and use tax on computer equipment purchases by eligible data centers, as WPSU explains. The Department of Revenue says 16 facilities in development or operating hold active certificates, and the state estimated it would lose nearly $1.9 billion in tax revenue over seven fiscal years starting in 2024-25.

    That is the tension. Voters resist the buildings while the tax code still rewards them.

    Is Pennsylvania alone?

    No. EnergyNow reports that, besides Massachusetts, several states including New Jersey, New York and Pennsylvania have paused or placed new limits on data center development in the face of local backlash.

    Our own coverage of that order is at Massachusetts Data Centers Must Now Use Clean Energy. The power side of the story is in Clean Energy Has a Lot Riding on the AI Data Center Boom.

    What does this mean for accredited investors?

    What changed is the path to getting a site approved. Fast Track sped up state permit decisions. If you hold or are considering exposure through a fund, a fair question for the sponsor is which of its Pennsylvania sites sit in unzoned municipalities and what local approvals remain.

    This is education, not a recommendation. For the asset-class basics, see Data Centers as Alternative Investments. For the lender side, see Infrastructure Debt Investing.

    Common mistakes

    Reading a state permit as a finished approval is the easy one to make. Technical.ly quotes the point directly: getting a state permit decision faster doesn't mean a project got delivered faster.

    Announced dollar figures, like Amazon's $20 billion, are plans until sites clear local review, so treating them as built capacity overstates what exists.

    And one state's rules don't travel. Massachusetts and Pennsylvania are doing very different things.

    FAQ

    Where are data centers in Pennsylvania?

    The reporting names several sites. Amazon has a project in Falls Township, Bucks County. NorthPoint's project is in Hazle Township. Proposed campuses sit in Archbald and in Clinton Township, Wayne County. Not all are approved or built.

    Did Shapiro ban new data centers?

    No. His executive order removed data centers from the Permit Fast Track Program and put new conditions on developers, according to Technical.ly. Projects can still apply through the normal process.

    Is local opposition working?

    Sometimes. Archbald's council denied one application unanimously. In unzoned townships, residents have fewer tools and are heading toward legal fights.

    One thing to do this week

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    Educational content only. Not investment, tax, or legal advice. Not an offer or solicitation to buy or sell securities. Past performance does not guarantee future results. Private-market investments are illiquid and involve risk of loss, including total loss of capital. Consult qualified advisers. Angel Investors Network is not a broker-dealer or investment adviser.

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    About the Author

    Jeff Barnes, MBA