Rush to build data centers spawns confusion in Pa. communities, board told

Pennsylvania is experiencing a rapid increase in data center development, which is causing uncertainty, confusion, and a lack of transparency in communities across the state. This issue was a central point of discussion during a recent hearing in Tioga County, hosted by the Center for Rural Pennsylvania. A notable disagreement arose between Stephen Bennett, a senior manager at PJM Interconnection, the regional power grid manager, and Dan Diorio, vice president of the Data Center Coalition, concerning the primary drivers of escalating electricity demand. Bennett asserted that data centers are the "predominant" factor, while Diorio contended that increased manufacturing, vehicle electrification, and hydrogen production also play significant roles. The hearing underscored the pressure on Pennsylvania's local governments to make swift decisions on complex data center proposals in the absence of comprehensive statewide regulations. Although some bills have passed the state House, and Governor Josh Shapiro introduced a "Governor's Responsible Infrastructure Development" (GRID) concept for new rules, these have not yet been formalized into law. Governor Shapiro indicated that the legislative process would be largely determined by the divided Legislature, led by Senate Majority Leader Sen. Joe Pittman and House Majority Leader Rep. Matt Bradford. Efforts are underway to address these challenges, including a bill sponsored by Rep. Robert Matzie that would grant regulatory responsibilities to the state Public Utility Commission, and another proposal to create a "model ordinance" to assist municipalities. Furthermore, some lawmakers are discussing the implementation of a moratorium on data center development. James Ladlee, a program leader at Penn State Extension, stressed the urgent need for resources and guidance for township supervisors, who are grappling with the rapid influx of proposals that often lack transparency and raise concerns about electricity, water use, property values, and quality of life.