Legislative Roundup: Sen. Pennycuick to introduce legislation concerning data center development

Legislative Roundup: Sen. Pennycuick to introduce legislation concerning data center development

News ClipTimes Leader·PA·5/31/2026

Pennsylvania Senator Tracy Pennycuick announced a legislative package aimed at regulating large data center development across the state. The proposed bills address concerns over land use, energy, and water resources, requiring data centers to bring their own power and implement closed-loop water systems or pay mitigation charges. The package also seeks to ban NDAs between developers and local governments, prohibit foreign-owned companies of concern from operating data centers, and ensure greater local control over zoning decisions.

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Gov: Pennsylvania Senate, Senate Communications and Technology Committee, Pennsylvania Data Center Advisory Committee

Senator Tracy Pennycuick (R-24) recently unveiled a comprehensive legislative package designed to give Pennsylvania communities more control over large data center developments. The proposed measures aim to address significant concerns regarding land use, infrastructure, energy demand, and water resources associated with these projects. Sen. Pennycuick, who chairs the Senate Communications and Technology Committee, emphasized the need for transparent consideration of data center proposals, stating that such projects should not be forced into unwilling communities or advanced without thorough public review.

The legislative package includes several key provisions. It would require large data centers to establish their own power supply and implement closed-loop reclaimed or recycled water systems for facilities using 100,000 gallons or more daily. Those unable to meet water requirements would face a mitigation charge to prevent costs from shifting to existing ratepayers. Additionally, the legislation seeks to prohibit state and local government agencies from entering non-disclosure agreements with data center developers, a practice Pennycuick noted often excludes residents from critical discussions.

Further proposals include banning foreign-owned companies of concern from operating data centers in Pennsylvania and mandating at least two publicly advertised meetings before any zoning decision on a hyperscale data center. The package also suggests creating a Pennsylvania Data Center Advisory Committee, which would operate for 10 years to monitor development and recommend further legislative or regulatory changes. State Representative Jamie Walsh (R-Ross Township) is also championing related legislation and will host a town hall in Sugarloaf Township to provide updates and gather resident feedback on data center regulations.