Pennsylvania has become the third state, behind New York, and Texas, to impose sweeping restrictions on the construction of new AI data centers, as the country’s once-default confidence in free-market technological development continues to erode. 

On Tuesday, Gov. Josh Shapiro signed an executive order imposing what his administration calls the “strictest standards in the nation” for AI data centers. Shapiro said he would not allow Pennsylvania to be “bullied” by “greedy” businesses and corporations, a framing that is not only misguided, but self-defeating for a state seeking investment, infrastructure, and a place in the next generation of technological development.

"I just signed an Executive Order implementing the strictest standards in the nation for AI data centers — because I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies," the Pennsylvania Gov. wrote on X. "Effective immediately, we’re requiring AI data centers to commit to strict environmental and transparency requirements AND receive approval from the local community if they want to build here."

"That’s not all," he continued. "We’re also removing ALL data centers from our Fast Track permit program and stopping any office or agency under my jurisdiction from signing an NDA with AI data center developers. I’m putting these developers on notice and letting them know that we will not let them bully Pennsylvanians, disregard our constitutional right to clean air and pure water, and drive up our utility bills. I’m using the full weight of my executive authority to block the objectionable, unwarranted projects and put the nation’s strictest set of protections in place."

There are several points to address. First, local voters should absolutely have a say over whether a data center is built in their community. In most cases, the available evidence suggests that data centers bring higher tax revenues, a lower relative tax burden for individual residents, and a range of broader economic benefits. 

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Communities with unusual environmental constraints or limited infrastructure capacity have every right to reject a proposed project. But too often, opposition is driven by the assumption that these facilities will inevitably bring economic, environmental, and social harm. That perception has become widespread, especially as data centers continue to lose the public-relations battle surrounding their expansion. 

However, statewide restrictions are not the answer. Government should not make a one-size-fits-all decision for every locality, particularly when communities are already being encouraged to view data centers with suspicion rather than weigh their actual costs and benefits. 

Unlike what Gov. Shapiro and his allies appear to believe, the likely result of this executive order is to put Pennsylvania at a disadvantage as states with greater economic sense welcome these investments instead. To some, it may not matter whether Pennsylvania hosts more data centers. But public opinion about data centers matters enormously as the United States competes with China for leadership in artificial intelligence. 

The country that masters this technology, and builds the power generation, computing capacity, and infrastructure around it, will become the global hegemon for decades to come. America cannot afford to surrender that advantage to China due to one of the most successful misinformation campaigns in recent history.