Pennsylvania lawmakers introduce bills targeting data center development

HARRISBURG, Pa. (WHTM) — A Luzerne County legislator introduced a bill this week intended to allow local governments to place a moratorium on data center applications.

Rep. Jamie Walsh (R-Luzerne) introduced House Bill 2533 on Wednesday.

“Our municipalities, which decide local land use policies, have struggled to understand the myriad environmental and community impacts of this new industry and to review and revise their zoning ordinances to keep up with the influx of interest from data center developers,” Walsh said in a co-sponsorship memorandum. “I am therefore proposing to give municipalities the option of placing a moratorium on data center applications so that, if they choose, they can revise their ordinances and establish conditional use policies addressing issues like power supply, water consumption, noise and setbacks which they determine protect the community’s interest.”

It is a companion bill, he said, to Senator Jarrett Coleman (R-Bucks/Lehigh)’s Senate Bill 1345.

They both would allow an 18-month moratorium on both unapproved and new data center applications.

The two legislators also introduced legislation they say would repeal the state Computer Data Center Equipment Exemption program enacted in 2021, which the legislators say incentivizes data centers to locate in Pennsylvania by exempting computer data center equipment from the Sales and Use Tax when it is sold to, used or consumed in a certified data center by an owner, operator or qualified tenant. This is in the form of House Bill 2532 and Senate Bill 1344 respectively.

“While we all appreciate the technological advances that are driving the development of new data centers, I am certain most Pennsylvanians want a more thoughtful approach to where and under what requirements they can operate and don’t want to subsidize them with tax incentives,” said Coleman. “The bills Rep. Walsh and I partnered on will do just that.”

Data centers have been a hot topic issue across Pennsylvania as communities have rallied to oppose developments, including in Columbia and in the Annville area.