Pennsylvania’s Data Center Dilemma: Shapiro Faces Backlash as AI Boom Collides with Local Opposition

On March 6, Pennsylvania real estate mogul Brian O’Neill sent a desperate email to Benjamin Kirshner, the state’s chief transformation and opportunity officer, with a direct plea to Governor Josh Shapiro.

Amazon had just informed O’Neill in writing that the company would not proceed with any projects in Pennsylvania until it received assurances that its investments could move forward. O’Neill wrote to Kirshner:

“In conversations, they have pointed out to us that they have been appealed in EVERY project at EVERY turn.”

O’Neill referenced his own project in Conshohocken, a Philadelphia suburb, which was blocked in November. He urged Shapiro to prevent frivolous appeals by requiring challengers to post bonds double the project’s value.

“If a $2 billion development is postponed due to an appeal, they should have to post a bond for $4 billion,”

Kirshner forwarded the request to top Shapiro administration officials with a simple “FYI.” However, the administration later stated it did not respond to O’Neill’s email. When asked if Shapiro supported the bond proposal, the governor’s office declined to comment, noting that it would require legislation—which has not been introduced. A representative for O’Neill promised a response but did not follow up. Amazon declined to provide further details, issuing a statement through an unnamed spokesperson that the company “has a deep and ongoing commitment to Pennsylvania.”

This exchange underscores the challenges Shapiro—and any governor or future presidential hopeful—faces as the AI-driven data center boom collides with fierce local opposition. Shapiro is not alone; governors nationwide are caught between developers eager for growth and voters alarmed by the rapid, opaque expansion of AI infrastructure.

In Maine, Governor Janet Mills recently vetoed a statewide ban on data centers, a move that disappointed progressive Democrats ahead of her U.S. Senate primary against progressive challenger Graham Platner.

For governors, the economic incentives are substantial. Pennsylvania has positioned itself as a leader in AI investment, with Shapiro announcing in June 2024 that he was “all in on AI.” The state has since attracted billions in tech funding, with reports estimating $100 billion in planned data center investments. Amazon alone pledged over $20 billion in AI infrastructure in 2025.