Pennsylvania’s Streamlined Permitting Draws AI Business
The PA Permit Fast Track Program, established by governor’s executive order to make the permitting process more efficient. Amazon’s $20 billion investment in the state, which the secretary said created at least 1,250 jobs, is one such example. The AI piece of this investment is expected to create a big economic impact beyond job creation, including impacts to the state tax base and the local tax bases where these facilities are built.“I have been really gratified to the extent to which it matters to businesses, large and small, that they have a strong, committed, effective partner in government,” said Rick Siger, secretary of Community and Economic Development. “And we’re just getting started,’ he said of the state’s AI program that has already garnered tangible results, and is being expanded to other areas.”
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The PA Permit Fast Track Program, established by governor’s executive order to make the permitting process more efficient, is spurring economic development in the state — for tech companies and beyond.Governments are leveraging various technologies to speed up the permitting process , from software tools to AI . In Pennsylvania, permitting process improvements have already led to investment — including one to the tune of $20 billion from Amazon that aims to establish multiple high-tech cloud computing and AI innovation campuses across the state. AI investments in the state are expected to have a significant economic impact Modernized permitting officially started with Executive Order 2024-04 in November, but Pennsylvania Secretary of Community and Economic Development Rick Siger said the work goes back to Gov. Josh Shapiro’s January 2023 creation of the Office of Transformation and Opportunity “The spirit of it is really about speed, certainty and predictability for the customers of government,” Siger said, noting that for state government, this includes businesses, local governments, and community groups. The goal was to bring urgency and accountability to the government process, he said, and the results are demonstrable. Obtaining a business license like one for a limited liability company used to take about eight weeks; today, he said, it takes two days.The Department of Community and Economic Development (DCED) works daily with businesses — both those in the state and those considering doing business there — and Siger said it is leveraging the new permitting speed, similarly to what the state would do with a grant or tax incentive. It’s working, he said. Businesses are citing the speed and certainty of state processes as an important factor of their investments in the state, he said.This is especially true for businesses with complex facilities and processes including, he said, tech companies. Amazon’s $20 billion investment in the state, which the secretary said created at least 1,250 jobs, is one such example.“It was absolutely critical in our discussions with Amazon that they had certainty and speed and predictability in permitting,” Siger said.Siger said he hopes this investment will signal to other companies that if a major business like Amazon has made this sizable investment, Pennsylvania can support business operations in the state, including big and complex projects.The AI piece of this investment is expected to create a big economic impact beyond job creation, including impacts to the state tax base and the local tax bases where these facilities are built.“But it’s also important, I think, to know that Pennsylvania is not just a place to build data centers,” said Siger, underlining that this work empowers a broader innovation economy. “It’s a place where next-generation breakthroughs in AI technology — whether it’s in life sciences, robotics, agriculture, and other areas — are happening.”A proposed data center project in Tucson, Ariz., recently faced public pushback, and was ultimately rejected due to water and energy concerns.However, Siger emphasized that the increased efficiency of the permitting process does not change or relax the rules of the road for companies in Pennsylvania, in terms of things like air quality, water quality, and endangered species protections. Companies still must adhere to the core protections in place for the state’s people and environment, he said, but officials are working to help them get there faster.Faster permitting is not just a benefit for companies considering moving to Pennsylvania, but also the more than 1 million small businesses already operating in the state. In addition, it supports state government employees, empowering them to tackle a backlog or bring on new technology.The Department of Environmental Protection, which supports distribution of air and water quality permits that are typically complex and can be large-scale, has essentially cleared its backlog, he said.“I have been really gratified to the extent to which it matters to businesses, large and small, that they have a strong, committed, effective partner in government,” Siger said. “And we’re just getting started.”With this massive AI investment, officials have enabled growth in the state’s own AI economy. Pennsylvania government has explored the use of AI through a pilot program that garnered tangible results , and the state’s IT teams are exploring broader AI implementation across government, Siger said.