Pennsylvania lawmakers split on data center regulation bills
Pennsylvania lawmakers are divided on how to regulate the state's growing data center industry, with the House passing several bills that face hurdles in the Senate. Proposed legislation addresses concerns over energy and water usage, clean energy requirements, and local zoning authority. Governor Shapiro has also introduced incentives for data centers meeting environmental standards.
The Pennsylvania House has passed a series of bills aimed at regulating the burgeoning data center industry across the state, but these proposals face significant resistance in the Republican-controlled State Senate. Senate Majority Leader Joe Pittman, R-Indiana, expressed a desire to approach the issue "holistically" rather than through individual bills, emphasizing competition with neighboring states for responsible development.
Key House proposals include a mandate for data centers consuming over 25 MW to disclose energy and water usage, pay into energy assistance programs, and use a percentage of clean energy, increasing to 32% by 2035. One bill, sponsored by state Rep. Rob Matzie, D-Beaver, would also prevent utilities from passing data center-related infrastructure costs to ratepayers. Another, from state Rep. Joe Webster, D-Montgomery, would require data centers planning to use more than 100,000 gallons of water per day to notify the Department of Environmental Protection (DEP) and potentially undergo additional permitting. State Rep. Kyle Mullins, D-Lackawanna, proposed annual reporting of water and energy usage, while state Rep. Kyle Donahue, D-Lackawanna, introduced a bill to direct the Local Government Commission to create a model zoning ordinance for townships, covering aspects like height, noise, setbacks, and community benefits agreements.
Governor Josh Shapiro has proposed accelerating permitting for data centers meeting environmental and transparency standards, and the state Public Utility Commission has approved a framework requiring large energy users like data centers to pay for necessary infrastructure upgrades. Environmental advocates, such as Conservation Voters of Pennsylvania, largely support the House bills as necessary "guardrails" to protect communities and the environment. Conversely, the Data Center Coalition, an industry trade group, opposes the legislation, arguing it places unfair and unique restrictions on data centers compared to other economic development projects, potentially deterring future investment in Pennsylvania.