Pennsylvania lawmakers introduce bills targeting data center development
Pennsylvania lawmakers have introduced bills that would allow local governments to impose an 18-month moratorium on data center applications and repeal a state tax exemption for data center equipment. The legislation aims to give municipalities time to revise zoning ordinances to address environmental and community impacts such as power supply, water consumption, noise, and setbacks. This comes as communities across Pennsylvania have expressed opposition to data center developments.
Pennsylvania lawmakers, including Rep. Jamie Walsh (R-Luzerne) and Senator Jarrett Coleman (R-Bucks/Lehigh), have introduced a package of bills aimed at regulating data center development across the state. House Bill 2533 and Senate Bill 1345 propose to grant local municipalities the authority to implement an 18-month moratorium on both unapproved and new data center applications. The legislators argue that this pause is necessary for local governments to adequately understand the environmental and community impacts of data centers and to revise their zoning ordinances to address issues like power supply, water consumption, noise, and setbacks.
Additionally, Rep. Walsh and Senator Coleman introduced companion legislation, House Bill 2532 and Senate Bill 1344, which seek to repeal the 2021 state Computer Data Center Equipment Exemption program. This program currently incentivizes data centers to locate in Pennsylvania by exempting certain equipment from Sales and Use Tax. Senator Coleman stated that while technological advances are appreciated, Pennsylvanians desire a more thoughtful approach to data center siting and do not wish to subsidize them with tax incentives. The legislative push follows active opposition from communities across Pennsylvania, notably in Columbia and the Annville area, regarding data center developments.