Area lawmakers push data center restriction bills
Multiple bills aimed at regulating data centers are advancing through the Pennsylvania legislature. One bill would empower municipalities to pause data center projects more easily, while another seeks to increase transparency and public accountability for developers. Additionally, a bill proposing a three-year statewide moratorium on hyperscale data centers has been introduced.
The Pennsylvania legislature is seeing a flurry of activity around data center regulation, with multiple bills advancing or being introduced in response to growing concerns over hyperscale data center proposals across the state.
State Rep. Paul Friel (D-26th Dist.) sponsored House Bill 2496, which unanimously passed the House Local Government committee. This bill aims to provide Pennsylvania municipalities with a stronger tool to pause data center applications for up to 180 days via a resolution, allowing them to update land use ordinances without declaring existing zoning 'flawed.' This mechanism intends to prevent developers from filing applications prematurely to avoid new rules.
Another bill, House Bill 2359, introduced by State Rep. Joe Ciresi (D-146th Dist.), was approved 23-3 by the House Communications Technology Committee. It seeks to increase transparency and public accountability by requiring data center developers with over 10 megawatts of electrical demand to disclose information like a "community protection plan" and an annual project footprint report on water and energy usage to qualify for state sales tax exemptions. The bill also prohibits non-disclosure agreements with government agencies. While Rep. Craig Williams (R-160th Dist.) expressed skepticism that companies would comply if it means losing tax breaks, the bill's sponsors emphasize its role in leveling the playing field for local communities.
Meanwhile, State Sen. Katie Muth (D-44th Dist.) has filed Senate Bill 1359, which calls for a three-year, statewide moratorium on the siting and permitting of hyperscale data centers and their auxiliary structures, such as gas-fired power plants. Sen. Muth stated that the moratorium is necessary to protect the constitutional right to clean air and pure water, asserting that "Pennsylvania is not a blank check for Big Tech." A third bill from State Rep. Joe Webster (D-150th Dist.) proposes strict guidelines for developers seeking tax incentives, focusing on energy affordability, transparency, and environmental protection. These legislative efforts are spurred by the high water and electricity consumption, noise pollution, and pressure on the power grid associated with data center development, with active proposals in numerous townships including East Vincent, Limerick, East Whiteland, and Upper Merion.