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Pennsylvania Governor Josh Shapiro (left) is at odds with billionaire Tim Sweeney. Tom Williams/CQ-Roll Call, Inc via Getty Images/Philip Pacheco/Getty Images

Billionaire CEO says Pennsylvania governor is 'sabotaging American progress' by cracking down on AI data centers

Rinna Diamantakos
Aug 19, 2026
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A growing political battle over the expansion of data centers is putting the future of America’s AI infrastructure under scrutiny. Pennsylvania has become the latest state to take a hard line against data center development — drawing sharp criticism from one billionaire.

“It’s very sad to see an American politician making a public display of sabotaging American progress,” billionaire Tim Sweeney, the founder and CEO of Epic Games, wrote in a post on X. “Pennsylvania used to produce 50% of America’s steel; just think of how many of the rusted out hulls of those steel mills could have been renewed for the revolution in computing.”

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The comment was made in response to a post by Pennsylvania Gov. Josh Shapiro detailing his new executive order that will place guardrails on data centers. The order will enforce stricter environmental and transparency requirements for any data centers looking to build in the state.

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Pennsylvania takes action

On Tuesday, the Democratic governor said his administration is removing the state’s fast-track permitting program for data centers. The new order mandates data centers must first be approved by local officials and that developers must sign a legally binding agreement to commit to state guidelines. The new guidelines mandate data centers to pay for their own power, hire locally, adhere to water conservation standards and be transparent with local governments.

In a statement, Shapiro said that Pennsylvania is seeing an “unacceptable number of speculative proposals for data centers swamp our commonwealth — many of them led by developers who have no regard for local communities.”

The mandate is a shift for Shapiro, who previously backed data center development in the state. Last year, the Democrat helped secure a $20-billion investment from Amazon for two data centers.

“I don’t want developers running roughshod across our communities,” Shapiro said on CBS Mornings on Wednesday. “That’s not what happened a year ago when I did work with Amazon to bring those two data centers here in Pennsylvania. But increasingly, developers see an opportunity to take advantage of Pennsylvanians. I won’t let it.”

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The fight against data centers

Pennsylvania is the latest state to take action against data centers. In Arizona, Democratic Gov. Katie Hobbs got lawmakers to agree to place a three-year moratorium on the state’s sales tax exemption for data centers.

In New York, Democratic Gov. Kathy Hochul ordered a one-year ban on large data centers. The move is meant to give the state time to impose environmental and energy protections.

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And it isn’t just Democrats taking action. Shapiro’s announcement came on the same day Texas Gov. Greg Abbott announced that several companies had agreed to new data center water, electricity and quality-of-life standards. The Republican has also paused Texas data center grid approval.

Data centers have been the focus of a growing political battle across the U.S. The centers are needed to power the AI boom, and their construction has been a core component of President Donald Trump’s agenda. Trump has pitched them as vital for competing with China on AI and has claimed data centers will help reduce taxes and increase property values.

But critics of data centers have argued they will increase local energy bills, impact water supplies and change the landscapes of communities.

Despite political debate, Americans seem united in their dislike for data centers. A March Gallup poll found 70% of Americans are opposed to building data centers in their area. Just 7% were in support. Those in opposition cited concern over the effect of resources, the cost, pollution, as well as general concerns about AI.

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Rinna Diamantakos Contributing Editor

Rinna Diamantakos is a contributing editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.

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