SALEM, Ohio — What could become the first-ever data center regulations in Pennsylvania passed the state House on March 24 in a 104-95 vote.
House Bill 1834, introduced by state Rep. Robert Matzie, D-Beaver County, would protect ratepayers from rising utility costs often attributed to data center development. It also directs the Pennsylvania Public Utilities Commission to review rates to ensure only data centers are paying for their energy needs.
With the data center boom well on its way, this bill is one of many efforts state legislators are making to quickly instate policy to protect communities while encouraging economic development.
Pennsylvania is home to more than 50 of these facilities already, with 56 more hyperscale data centers — which support artificial intelligence — either proposed or under construction, according to Data Center Proposal Tracker.
Data centers require a lot of energy to operate, the equivalent energy usage of 80,000 to 800,000 homes. When these facilities connect to the grid for this energy, it can lead to increased electric bills for both residential and business customers, too.
“No one’s electric bill should ever go up because a data center has located to Pennsylvania,” Matzie said in a statement.
“It’s possible to protect ratepayers while still allowing the Commonwealth to reap the economic benefits data centers can bring. Those goals are not mutually exclusive — as long as we get the right regulatory framework in place. This bill does that.”
The legislation also incentivizes clean energy construction, like solar and wind, by requiring new data centers to source at least 10% of their electricity from clean energy by 2027 and at least 32% by 2035. Matzie says the clean energy rules will reduce emissions while creating jobs in the state.
The bill also orders data centers to provide funds for the state’s low-income energy assistance programs, which help low-income families pay their heating bills through cash grants.
While the bill got “yes” votes from two House Republicans, most did not support the bill, including Rep. David Rowe, a Republican from central Pennsylvania, who said the bill puts a “massive regulatory burden on some of the largest developers in the country,” which could deter economic growth in the state.
Others, like state Rep. Joe D’Orsie, R-York County, criticized the “backdoor green energy effort.”
Some environmental groups applauded the legislation, while others were more tempered in their response, citing the need for more protections for residents and consumers.
“House Bill 1834 not only helps protect consumers, it will also spur new clean energy technologies needed to meet growing demand in the Commonwealth,” the Pennsylvania Environmental Council said in a statement.
Other groups, like CCJ and PennFuture, are advocating for a full moratorium on data centers.
State Rep. Katie Muth, a Democrat who represents parts of Chester, Berks and Montgomery counties, recently stated her intent to introduce a statewide three-year moratorium on data center development so local elected officials have time to evaluate the risks, enact protective ordinances and update their zoning regulations.
House Bill 1834 advances to the Pennsylvania state Senate for consideration.
(Liz Partsch can be reached at epartsch@farmanddairy.com or 330-337-3419.)
