Harrisburg passes consequences for data center non-transparency
The Pennsylvania House has passed a bill that aims to increase transparency around data center developments by removing tax breaks from developers who use non-disclosure agreements with local officials. The legislation also introduces requirements for data centers to report on water, energy, and power usage, and to hold public meetings. The bill will now proceed to the Senate for approval.
The Pennsylvania House of Representatives has passed a bill aimed at increasing transparency in data center developments by penalizing developers who use non-disclosure agreements (NDAs) with local officials. The legislation, which passed 171-to-31 and now moves to the Senate, would remove tax breaks from such developers.
Proponents, including Republican Rep. Jamie Walsh and Democratic Rep. Jim Haddock of Luzerne County, argued that NDAs have damaged communities by keeping residents uninformed about proposed data center projects and that companies leverage significant economic pressure on municipalities. Haddock cited a $105 million data center proposal in his county as an example of the issue.
Opponents, such as Republican Rep. Joshua Kail from Beaver County, contended that the bill undermines local authority and questions the competency of elected officials. Republican Rep. Robert Leadbeter of Columbia County criticized the bill for quietly expanding government authority through new mandates, including reporting requirements for water, energy, and power usage, and establishing public meetings. Rep. Charity Kruppa from Fayette County suggested that if the state intervenes, it should directly prohibit NDAs at all levels, rather than imposing indirect penalties.