Gov. Josh Shapiro's proposal to regulate data centers passed a bipartisan vote
The Pennsylvania House passed a proposal backed by Gov. Josh Shapiro that would link tax incentives for data centers to environmental, energy, and transparency requirements. Additionally, legislation was approved to enable municipalities to enact moratoriums on major data center projects while addressing zoning concerns. Both measures now proceed to the Pennsylvania Senate for further consideration.
The Pennsylvania House of Representatives passed two key legislative measures impacting data center development in the state, both of which are now headed to the Senate for consideration.
One proposal, championed by Gov. Josh Shapiro, aims to restructure existing tax exemptions for data center equipment. Under the new measure, these incentives would only be available to projects that comply with specific standards concerning environmental protection, energy consumption, and community engagement. Supporters, including State Rep. Joe Webster, argue the bill addresses community concerns like increased electricity demand, water usage, and noise by incentivizing developers to implement safeguards and community benefit agreements. While some Republicans, such as Rep. Scott Barger, opposed the measure, questioning its effectiveness on developers who already have approvals, others like Rep. Jeremy Shaffer supported it while expressing doubts about its influence on large hyperscale operators.
Separately, House lawmakers also approved legislation that would empower municipalities to implement moratoriums on major data center projects. This move is intended to give local communities time to review and update their zoning laws and other regulations to mitigate potential environmental and community impacts from data center development.