State House passes data center rules amid Pa. ‘affordability’ push

The Pennsylvania State House has advanced a bill aimed at regulating data center development, sending it to the Senate for consideration. The legislation, sponsored by Democratic Rep. Robert Matzie of Beaver County, seeks to prevent data centers from increasing electricity costs for existing ratepayers, mandate security deposits, and impose increasing clean energy requirements, including nuclear, solar, battery storage, and hydrogen. Matzie emphasized the importance of addressing data center impacts on "affordability." The bill faced significant opposition from House Republicans, who criticized its reliance on the state's Public Utility Commission (PUC), arguing it could usurp local control over data center siting decisions. Republican Rep. Jamie Walsh of Luzerne County called it a "slippery slope," while Rep. Robert Leadbeter of Columbia County warned of "eroding local municipal authority." Rep. Jeremy Shaffer of Allegheny County suggested that reforming the PJM Interconnection power grid was the true solution. Democratic Sen. Lisa Boscola, a minority chair on the Senate Consumer Protection & Professional Licensure Committee, acknowledged the bill as a "good start" but predicted changes. She noted that some of her party members support a moratorium on data center construction, though she personally believes data centers are necessary and has proposed an "impact fee" for affected communities. The bill passed the House with a vote of 104-95.