Data Center Dash in Harrisburg
Pennsylvania lawmakers are navigating proposals for data center regulations, including a House-passed bill to allow local governments to enact temporary 180-day moratoriums for new applications, which awaits Senate approval. Simultaneously, the House passed Governor Shapiro's GRID plan for incentives and voted to eliminate a sales tax exemption, amid ongoing public opposition and calls for stricter statewide rules regarding environmental impacts and utility usage.
Pennsylvania lawmakers are currently addressing the rapid proliferation of data center projects, balancing growing public skepticism with the artificial intelligence and manufacturing industries' push for easier regulatory paths. Concerns over noise, water usage, and strain on energy systems have been raised by residents.
The state House of Representatives voted 201-1 to pass a bill allowing local officials to implement a 180-day moratorium on data center applications. Sponsored by Rep. Paul Friel (D-Chester County), the legislation aims to provide local governments time to update ordinances with specific standards, such as requiring independent water and energy studies or prohibiting projects on viable farmland. This bill still requires approval from the Senate.
Separately, the House also passed Democratic Gov. Josh Shapiro's GRID plan, by a 134-68 vote, which creates a tax break and permitting fast-track program for data center businesses. However, advocacy groups like Food and Water Watch criticize the plan for lacking stringent requirements. The House further voted to eliminate an existing sales tax exemption for data centers, which the state Senate has since amended into another bill.
Public opposition remains strong, with over 150 citizens rallying at the state capitol and more than 500 individuals and 49 groups signing letters against Shapiro's GRID policy. Senator Rosemary Brown (R-Lackawanna, Monroe, Wayne Counties) advocates for strict statewide rules, including requiring projects to confirm local utility capacity and limiting them to industrial zones. Other Republicans, like Rep. Clint Owlett (R-Tioga, Bradford County), argue that existing environmental reporting rules are sufficient. The debate also includes constitutional questions regarding a statewide ban and private land rights. Data center policy has become a political issue, with figures like GOP gubernatorial candidate Stacy Garrity supporting development pauses.