Pennsylvania lawmakers have advanced two bills designed to give the state and its municipalities more control over the rapid growth of data centers, writes Evan Brandt for The Pottstown Mercury.
The issue that has become especially relevant in Montco, where multiple large proposals have already sparked debate over secrecy, energy use, and local control.
Montgomery County Lawmakers at the Center
Two Montgomery County representatives have been among the most vocal voices driving the legislation.
Rep. Joe Ciresi raised alarms earlier this year after a developer behind a proposed 1.5 million-square-foot facility near the Limerick nuclear plant asked township officials to sign a non-disclosure agreement. Ciresi refused to name the company that would ultimately occupy the building.
Limerick Township leaders declined to sign, but the episode highlighted the lack of transparency surrounding large data center projects and helped build momentum for stricter state oversight.
Rep. Joe Webster introduced House Bill 2650. This would establish benchmarks for energy affordability, community engagement, workforce development, and environmental protection.
What the Bills Would Do
The state House approved legislation that would tie Pennsylvania’s sales tax exemption for data center equipment to Governor Josh Shapiro’s Responsible Infrastructure Development standards.
That measure passed 134-68 and now heads to the state Senate.
Under the proposal, developers seeking the tax benefit would need to earn GRID certification. Applicants will need to outline plans to protect local electric customers, reduce environmental impacts, and engage with surrounding communities. They would also need to create jobs paying at least 125 percent of the statewide average wage.
The legislation would also require developers to explain how they plan to obtain the electricity needed to operate without increasing costs for existing customers.
That provision comes as PJM Interconnection, the Audubon-based regional grid operator, faces mounting pressure over electricity demand from data centers and other large users.
A second bill, approved 201-1, would allow municipalities to pause new data center applications for up to six months while they create or revise local zoning ordinances.
Pennsylvania municipalities cannot completely prohibit a lawful land use. They can, however, regulate where and how developments are built.
The proposed pause would give local officials time to study the industry and establish protections before applications move too far through the approval process.
Critics Say the Bills Do Not Go Far Enough
Environmental and community groups have argued that the GRID proposal does not adequately address the environmental issues associated with the centers. Estimates for water use at data centers range from 300,000 gallons per day at mid-sized facilities to 5 million gallons per day at larger ones.
Critics also note that the standards remain effectively voluntary, because developers could simply decline the tax exemption and proceed without GRID certification.
The Data Center Coalition, the industry’s trade group, has taken the opposite position, opposing the House legislation and arguing it holds the industry to unfair standards.
The Senate Is the Next Hurdle
Both bills now await consideration in the state Senate, where the path forward is uncertain.
Senate Majority Leader Joe Pittman has said he does not think lawmakers should be considering individual data center bills right now, preferring a more comprehensive approach. Whether that means a broader package or no action at all remains to be seen.
For communities like Limerick Township, where a massive data center campus is already in the pipeline, the Senate’s timeline matters.
Pennsylvania is attempting to balance data center investment with rising concerns over infrastructure, utility costs and local control. But the clock is ticking for municipalities that want updated zoning rules in place before the next application lands on their desk.
To learn more about the new legislation to slow data centers in Montco and throughout PA, visit The Pottstown Mercury.
