Gov. Shapiro signs $50.8 billion compromise budget, despite some opposition in both parties
Pennsylvania Governor Josh Shapiro signed a $50.8 billion compromise budget into law, which includes new regulations impacting data centers and the state's energy market. The budget mandates data centers consuming over 10 megawatts to report power and water usage to the DEP and requires PJM Interconnection to share forecasting data with state regulators. Several proposed legislative efforts, including bills to allow local governments to pause data center applications and a plan to incentivize data center builders, were not approved.
Pennsylvania Governor Josh Shapiro signed a $50.8 billion state budget for the upcoming year, approved by both the state House and Senate. The budget, a product of compromise in a divided government, spends less than Shapiro's initial request and omits policies like legalizing recreational cannabis and regulating skill games, which were meant to generate new revenue.
Despite omitting some proposals, the budget includes significant policy changes affecting the data center industry and energy sector. It incorporates measures to enhance transparency in the commonwealth's electricity market and enforce accountability for major tech companies with data centers. Specifically, the legislation requires PJM Interconnection to share forecasting information with state regulators and mandates data centers using more than 10 megawatts of electricity to report their power and water consumption to the state Department of Environmental Protection. Furthermore, the budget updates the regulatory framework for natural gas drilling to allow development in the Utica Shale formation.
However, several key proposals related to data centers did not pass. Lawmakers had proposed bills that would grant local government officials the option to pause new data center applications to update land use ordinances, but none of these were approved. Similarly, Gov. Shapiro's plan to incentivize data center builders to meet benchmarks for energy procurement, community engagement, workforce development, and environmental protection passed the House but failed to receive consideration in the Senate.