Proposed Pennsylvania data center rules emphasize transparency, local control
A Pennsylvania Senate committee approved legislation that would prohibit state and local governments from signing nondisclosure agreements with data center developers. The broader package would also address local control, foreign ownership, electricity costs and water rates, while Gov. Josh Shapiro has already restricted certain NDAs involving state agencies.
A bill sponsored by Republican state Sen. Tracy Pennycuick would bar Pennsylvania state agencies and local governments from entering nondisclosure agreements with data center developers. The measure passed a Senate committee and is part of a broader package addressing data center transparency, local approval authority, foreign ownership, electricity costs and water use.
Pennycuick said residents need more information about major projects and their potential community impacts, while industry representatives have argued that NDAs can protect sensitive business information. Gov. Josh Shapiro’s existing executive order limits NDAs involving state agencies and requires projects receiving state support to obtain local approval, cover their power costs and follow water-conservation standards. Microsoft and Amazon have separately indicated they are ending or avoiding NDAs with government agencies for future data center projects.