Lawmakers in Pennsylvania are moving forward with legislation designed to give communities more oversight over the rapid expansion of data centers while increasing transparency about their environmental and energy impacts.
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The proposed measures recently advanced through the Pennsylvania House Energy Committee and focus on two key areas: requiring large data centers to report their annual energy and water usage, and creating a model local law that municipalities could adopt to guide where and how such facilities are built.
The bills were approved along party lines by the Democratic-controlled committee and now move further into the legislative process.
Supporters of the legislation say the proposals are intended to ensure that communities understand the potential impacts of large-scale computing facilities before projects move forward.
Data centers — large buildings filled with servers and digital infrastructure — require massive amounts of electricity and water for cooling systems and computing operations.
Elizabeth Fiedler, a Democrat from Philadelphia, said the legislation aims to ensure residents have clear information about the impacts of such projects.
“That is exactly what this legislation aims to do, to make sure there's transparency and fairness, and make sure the people who live in this commonwealth are protected from any adverse impacts,” Fiedler said.
Supporters argue that requiring operators to report their annual resource use would help policymakers, utilities and local governments better understand the strain these facilities may place on infrastructure and environmental resources.
Some Republican lawmakers expressed concern that the proposed requirements could make the state less attractive to technology companies considering building new facilities.
Mike Armanini said data center development could represent a major economic opportunity for the region.
“ We can't miss out on this opportunity and I fear with the way this legislation is written now, it is going to be faulty and we are not going to win this. We must win this,” Armanini said.
Industry advocates often highlight the economic benefits of data centers, including job creation during construction, long-term technical employment and additional tax revenue for local communities.
The rapid growth of data centers across the United States has triggered concerns about energy demand and infrastructure capacity.
In the mid-Atlantic region, the power grid managed by PJM Interconnection has warned that data centers account for nearly all projected growth in electricity demand in the coming years.
The increase in demand has already contributed to rising energy costs in some areas, prompting policymakers to consider how large industrial power users may affect residential electricity bills.
In response to these pressures, PJM has capped certain capacity costs through 2030, following pressure from state governors within its service region.
Community concerns have also played a role in the debate over data center development. Residents in areas such as Springdale have protested proposed facilities due to worries about potential noise, environmental impacts and industrial-scale infrastructure being built near residential neighborhoods.
The proposed legislation aims to give towns and cities tools to address those concerns by providing a model zoning framework that municipalities can adopt when reviewing projects.
Supporters say such guidelines could help local governments regulate building size, infrastructure needs, and environmental safeguards without fully blocking investment.
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The legislation is part of a broader effort in the state capital of Harrisburg to address the growing influence of data centers on the state’s power grid and local communities.
The Pennsylvania Public Utility Commission is also considering guidance for utility companies on how to manage energy demand from data centers.
Meanwhile, Josh Shapiro has suggested that large technology companies should provide their own power sources for data center facilities in order to avoid increasing electricity costs for residential customers.
As the digital economy continues expanding and artificial intelligence drives demand for computing infrastructure, lawmakers across the country are increasingly grappling with how to balance economic growth with environmental and community protections.
If approved, the Pennsylvania legislation could serve as a model for other states facing similar challenges as data center development accelerates nationwide.
Originally reported by Rachel McDevitt, 90.5 WESA in WESA.
