Pennsylvania lawmakers propose bills to allow temporary data center bans, revise zoning

Pennsylvania state lawmakers are proposing new legislation aimed at giving municipalities more control over data center development. State Rep. Jamie Walsh and Sen. Jarrett Coleman have introduced companion bills that would allow townships and boroughs to enact a temporary moratorium on data center applications. This pause would provide local governments with time to revise their zoning ordinances and establish conditional use policies, addressing concerns such as power supply, water consumption, noise, and building setbacks. Additionally, a second bill sponsored by Rep. Walsh seeks to repeal Act 25 of 2021, the Computer Data Center Equipment Exemption Program, which currently provides a sales and use tax exemption for certain data center equipment. Walsh argues that the recent surge in data center development indicates this incentive is no longer necessary. Repealing the exemption would redirect funds to the Motor License Fund, potentially helping to reduce the state's gas tax. Rep. Walsh released co-sponsorship memos on May 4, with the bills pending assignment to committees for consideration.