Coleman, Walsh Seek to Combat Data Center Spread
Pennsylvania state legislators, Sen. Jarrett Coleman and Rep. Jamie Walsh, have introduced bills to repeal a state tax break for data centers and empower municipalities to enact 18-month moratoriums on new data center applications. The legislation aims to give local communities more control to address concerns regarding data centers' energy and water consumption, noise output, and to allow time for zoning ordinance revisions.
Sen. Jarrett Coleman (R-16) and Rep. Jamie Walsh (R-117) have introduced a legislative package in the Pennsylvania Senate and House of Representatives aimed at curbing the rapid proliferation of data centers across the state.
The proposed bills, Senate Bill 1344 and House Bill 2532, seek to repeal the 2021 state Computer Data Center Equipment Exemption program, which currently incentivizes data centers to locate in Pennsylvania by exempting certain equipment from sales and use tax. The revenue generated from this repeal would be directed to the Motor License Fund to reduce the Oil Company Franchise Tax.
Additionally, Senate Bill 1345 and House Bill 2533 would grant municipalities the authority to implement an 18-month moratorium on both unapproved and new data center development applications. This temporary pause would allow local governments to revise zoning ordinances and establish comprehensive policies addressing critical issues such as power supply, water consumption, noise, and setbacks. Both legislators emphasized the need for local control, citing concerns over the massive energy and water use, noise output, and overall community impact of large data center developments.