Shapiro, Republican lawmakers pitch separate ideas on data centers

Pennsylvania Governor Josh Shapiro and Republican lawmakers have unveiled separate proposals aimed at regulating data center development across the state, a sector that has generated significant controversy and opposition. Governor Shapiro, a proponent of artificial intelligence, detailed new voluntary standards for data center proposers who wish to receive state government support. These guidelines emphasize energy affordability, transparency, community engagement, economic development, and environmental protection, as the governor seeks to address public concerns about utility bills and environmental impact.

In parallel, Republican Senators Jarrett Coleman of Lehigh County and Rep. Jamie Walsh of Luzerne County introduced legislation to repeal a state sales tax exemption for data center equipment, originally enacted in 2021. They also proposed bills that would empower municipalities to implement 18-month moratoriums on data center applications, citing concerns over "massive energy use, water use and noise output." These proposals align with previous legislative efforts and Governor Shapiro's suggestion to condition tax breaks on adherence to his new voluntary standards.

Opposition groups, including Food & Water Watch, criticized Shapiro's plan as a collection of "voluntary half-measures" that fail to adequately protect resources or quality of life, advocating instead for an outright prohibition on state support and a moratorium on development. Senator Katie Muth of Chester County announced that a bill based on her memo for a three-year statewide moratorium on large data centers is forthcoming. Muth highlighted that Shapiro's standards lack binding requirements such as property setbacks, which could prevent hyperscale data centers from being built near residential areas.

The Data Center Coalition, an industry group, expressed concerns through a public relations firm, stating that Shapiro's framework "creates a complicated framework that would present significant challenges for future development." Conversely, Clean Power PA, an clean energy advocacy group, supported Shapiro's initiative, believing it would promote responsible growth with protections for communities. Additionally, the governor launched a "toolkit" to assist municipalities in managing data center proposals, a resource welcomed by the County Commissioners Association of Pennsylvania.