Three data center regulating bills headed to state Senate
Three bills regulating data center development have passed the Pennsylvania House and are now headed to the state Senate. These bills include codifying Governor Shapiro's Responsible Infrastructure Development (GRID) Standards, ending certain data center tax breaks, and allowing local governments to enact 180-day moratoriums. Localities like South Strabane Township are proactively adopting ordinances amid concerns about potential data center projects.
Three legislative bills that could significantly influence data center development in Pennsylvania have successfully passed through the state House of Representatives and are now advancing to the Republican-majority state Senate. The first bill, HB 2650, aims to formalize Governor Josh Shapiro's Responsible Infrastructure Development (GRID) Standards, which were initially outlined in his 2026-27 Budget Address. These standards would establish a new certification framework for data center projects in the state, emphasizing energy affordability, transparency, community engagement, workforce development, and environmental protection.
The second bill, HB 2198, proposes to eliminate specific tax breaks previously available to data center operators, which allowed them to claim refunds on taxes paid for equipment. The third bill, HB 2496, empowers local governments to impose a 180-day moratorium on data center applications, providing them crucial time to update or adopt relevant ordinances governing such developments. All three bills received bipartisan support in the House.
Governor Shapiro has voiced support for the GRID Standards, citing concerns from Pennsylvanians regarding data center impacts on their communities. He emphasized that these standards would mandate developers to secure their own power, engage transparently with local communities, support local workers, and protect the environment, urging the state Senate to pass the legislation. Meanwhile, communities in Washington County, including South Strabane Township, have been rapidly enacting their own local zoning ordinances in anticipation of potential data center projects, particularly after a large property was listed as a prime development site. Dennis Makel, South Strabane Township solicitor, highlighted the challenges data centers pose for local governments due to their unknown long-term ramifications and underscored the utility of the proposed moratorium bill in allowing municipalities adequate time for regulatory updates.