Pennsylvania’s Governor Helps Clear Path for Controversial Data Centers in Suburbs

On a warm evening in May 2026, Freedom Hall in Upper Merion Township was packed with over 200 concerned residents. Hundreds more gathered outside in the sweltering heat, many wearing "No Data Centers" stickers on their T-shirts. Inside, Pennsylvania real estate executive Brian O’Neill presented plans for a massive data center complex to the Upper Merion Township Planning Commission.

“We make cell and gene therapies which cure genetic diseases and cancer,” O’Neill said, referring to his company’s Discovery Labs medical research center in Upper Merion. He promised that the new AI data centers would bring significant benefits, including a 54 percent increase in local tax revenue. However, the crowd grew increasingly agitated.

“We don’t want it!” someone shouted, and others joined in with boos and jeers as O’Neill tried to continue his presentation.

The proposed project, which includes several data centers and gas-fired power plants, has sparked a nationwide backlash against the AI industry’s rapid expansion. Many communities are concerned about the environmental impact, increased energy consumption, and potential health risks associated with these facilities.

Behind the Scenes: State Officials and Data Center Developers

Emails obtained through public records requests reveal that Pennsylvania Governor Josh Shapiro’s office played a significant role in facilitating the project. These communications show state officials working closely with data center developers to streamline the permitting process and address regulatory hurdles.

Governor Shapiro, who has been a vocal supporter of tech industry growth, used his budget address to propose new standards for data center development. He suggested requiring developers to contribute to local infrastructure costs and environmental protection measures. However, critics argue that these proposals do not go far enough to protect communities and the environment.

“While we appreciate the governor’s efforts to set some guidelines, they fall short of what is needed to ensure public health and safety,” said Jane Thompson, a resident of Upper Merion Township and member of the local opposition group. “We need more stringent regulations and greater community input.”

The controversy in Upper Merion is not unique. Similar projects across Pennsylvania and other states have faced significant resistance from residents concerned about the environmental and social impacts of large-scale data centers. In neighboring Plymouth Township, another proposed data center site has also drawn public protests.

What Comes Next

As the debate over data center development continues, both political parties are finding themselves at odds with affected communities. Governor Shapiro’s support for these projects is a key issue in the upcoming 2026 midterm elections and state governor’s race in November. Republicans, including Representative John Gaydos, have also expressed concerns about the environmental impact and regulatory compliance of data center projects.

“Governor Shapiro is providing tax credits and fast-track permitting for data centers through the Department of Environmental Protection (DEP),” said Rep. Gaydos. “This approach prioritizes corporate interests over community well-being and environmental protection.”

The U.S. Army Corps of Engineers has also raised concerns about the potential environmental impact of these projects, particularly regarding water usage and air quality. A letter from the Pittsburgh district office to Rep. Gaydos highlighted the need for thorough environmental assessments before any construction begins.

For residents like Jane Thompson, the fight is far from over. “We will continue to advocate for our community and demand that state officials listen to our concerns,” she said. “The future of our township depends on it.”

As the political landscape evolves and public opinion shifts, the fate of these data center projects remains uncertain. The coming months will be crucial in determining whether communities can successfully push back against what they see as an environmentally harmful and unregulated expansion of the tech industry.