Lowman Henry: Data center hysteria spreads across Pennsylvania
This opinion piece argues that public "hysteria" over data center development in Pennsylvania, fueled by misinformation, is unwarranted. It addresses common concerns regarding rising electricity rates and water consumption, attributing high electricity costs to government regulation rather than data centers. The author advocates for treating data centers like other businesses under existing zoning laws, while also questioning tax breaks and subsidies.
Lowman S. Henry, Chairman & CEO of the Lincoln Institute, contends that widespread public "hysteria" regarding data center development across Pennsylvania is largely unfounded. Writing in an opinion piece for pottsmerc.com, Henry draws parallels to Y2K fears, asserting that current opposition to data centers is driven by misinformation, conspiracy theories, and NIMBYism. He highlights the economic benefits of data centers, including high-paying construction and permanent jobs, and significant contributions to the local tax base.
Henry directly refutes common concerns, particularly the claim that data centers cause rising electricity rates. He explains that Pennsylvania is part of the PJM power grid, negating localized impacts, and attributes escalating electricity costs to the state government's regulatory uncertainty, specifically citing the Regional Greenhouse Gas Initiative (RGGI). He points to cancellations of power projects and closures of plants, such as the state's largest coal plant and a nuclear reactor, as the true cause. He notes that data center developers are often constructing new generation facilities, like a natural gas plant in Homer City, or investing in upgrades, such as restarting the Three Mile Island nuclear plant near Middletown, to ensure power supply.
Addressing water consumption, Henry asserts that water is not scarce in Pennsylvania and data center usage is minimal compared to other activities like irrigating golf courses. He also touches on zoning, stating that data centers should be sited in appropriate commercial zones under existing municipal codes, rather than in residential areas. While acknowledging that concerns over tax breaks and subsidies for data centers are valid, he argues against government intervention in market forces.
Henry concludes by urging "prudent consideration" of data center construction in line with local zoning, but warns against allowing "misinformation-driven hysteria" to impede the development of what he considers a critical component of the nation's future.