State House passes data center rules amid Pa. 'affordability' push

The Pennsylvania House of Representatives has passed a bill that establishes new rules for data center development in the state, sending it to the Senate for further consideration. The legislation, sponsored by Democratic Rep. Robert Matzie of Beaver County, aims to prevent data centers from imposing additional costs on electricity ratepayers and mandates that they increasingly source power from clean energy, including nuclear, solar, battery storage, and hydrogen. It also tasks the state Public Utility Commission (PUC) with setting regulations and securing security deposits from data centers. The bill's passage followed a contentious debate, with House Republicans voicing strong opposition. Rep. Jamie Walsh of Luzerne County criticized the PUC's expanded role, calling it a "slippery slope" that could lead to the PUC controlling data center siting. Rep. Robert Leadbeter of Columbia County echoed concerns about the erosion of local municipal authority, while Rep. Jeremy Shaffer of Allegheny County suggested that reforming the PJM Interconnection power grid was the true solution to data center challenges. The bill passed with a vote of 104-95, with two Bucks County Republicans joining Democrats in support. Democratic Sen. Lisa Boscola, who chairs the Senate Consumer Protection & Professional Licensure Committee, described the House action as a "good start" but expects changes to the bill in the Senate. She noted that some members of her party advocate for a moratorium on data center construction, though she personally believes data centers are needed and has proposed an "impact fee" to benefit affected communities. The discussion around data center rules is part of a broader push by lawmakers to address "affordability" in Pennsylvania.