Pennsylvania Passes Law Requiring Data Center Utility Reporting
Pennsylvania has passed a new law requiring data centers to annually report their electric and water usage to the Department of Environmental Protection, starting in 2027. This is one of the few statewide data center policies included in the state budget, despite other proposals for moratoriums and tax break changes not passing. The department will release public reports, but the law does not currently restrict projects based on high utility consumption.
The Pennsylvania state budget has passed a new law requiring data centers to report their electric and water usage to the Department of Environmental Protection, effective 2027. This mandate, found on page 128 of the fiscal code bill, makes Pennsylvania one of the few states to enact such a statewide data center regulation. The Department will compile and release annual public reports on statewide trends, although the law currently does not empower the state to deny or limit data center projects based on high utility consumption.
The passage of this reporting requirement follows weeks of intense policy discussions and grassroots opposition, including rallies against AI data center development, which a recent Quinnipiac poll indicated 74% of Pennsylvania voters oppose in their communities. While the usage reporting bill advanced, several other significant data center-related legislative proposals failed to pass into law within the budget.
Among the unpassed proposals were bills addressing data center moratoriums, with the Democratic-controlled House passing legislation that would grant local governments a 180-day pause on data center applications for zoning and land use approvals to update their rules. The Republican-controlled Senate Local Government committee also amended and passed a similar bill, as well as another proposing an 18-month moratorium. Discussions also involved sales and use tax breaks; the House passed Governor Josh Shapiro's GRID plan, linking transparency and environmental expectations to existing tax exemptions, while also passing a bill to eliminate that same sales tax break, which later saw amendments in committee but stalled. House Democratic Leader Rep. Matt Bradford expressed a desire for more statewide policy to empower local communities and ensure data centers "pay their own way" while protecting consumers.