Key Data Center Legislation Advancing in Pennsylvania

By Jen Quinn, Legislative and Political Director, Sierra Club Pennsylvania Chapter

Following our recent action alert on House Bill 1834 (the bill directing the Public Utility Commission to establish regulations for large data centers to protect ratepayers and grid reliability), we wanted to share an overview of other important data center legislation currently moving through the Pennsylvania General Assembly.

These bills address critical issues, including transparency on energy and water use, tools for local governments, a temporary moratorium, and the removal of public subsidies for this rapidly expanding industry. These bills represent meaningful steps toward ensuring data center development does not harm Pennsylvania communities, our environment, or utility customers.

HB 2150 (Prime Sponsor: Rep. Kyle Mullins): ​​​​​​PASSED the House

Requires data centers to submit annual reports to the Department of Environmental Protection (DEP) detailing their total energy and water consumption, peak usage, efficiency measures, and projections, with penalties for non-compliance. This establishes basic transparency, so policymakers and residents can better understand the scale of resource demands. View HB 2150.

HB 2151 (Prime Sponsor: Rep. Kyle Donahue): PASSED the House

Directs the Local Government Commission to create a model data center ordinance that municipalities can adopt or adapt. It provides practical guidance on issues such as noise, siting, and resource consumption to help communities manage development responsibly while minimizing negative impacts. View HB 2151.

HB 2246 (Prime Sponsor: Rep. Joe Webster): PASSED the House

Amends state water resources planning laws to direct DEP to develop a specific permitting and reporting framework for data center water withdrawals. This integrates these facilities into the State Water Plan and helps evaluate and manage impacts on local water supplies and other users. View HB 2246.

HB 2198 (Prime Sponsor: Rep. Greg Vitali): PASSED the House

Repeals the Computer Data Center Equipment Incentive Program in the Tax Reform Code, eliminating sales tax exemptions and other incentives currently available for data center equipment purchases. This removes taxpayer subsidies that have helped fuel the industry’s rapid growth. View HB 2198.

HB 2650 (Prime Sponsor: Rep. Joe Webster): PASSED the House

Would tie eligibility for data center tax incentives to certification under the Governor’s Responsible Infrastructure Development (GRID) standards. Certification would require commitments to energy affordability for ratepayers, community engagement, workforce development, environmental protection, and transparency. View HB 2650.

HB 2496 (Prime Sponsor: Rep. Paul Friel): PASSED the House

Amends the Municipalities Planning Code to allow local governments to adopt a temporary pause (up to 180 days) on the review of data center land-use applications. This gives municipalities critical time to study local impacts on infrastructure and resources and update zoning ordinances without being rushed by pending proposals. View HB 2496.

HB 2359 (Prime Sponsor: Rep. Joe Ciresi): In committee

Strengthens transparency requirements tied to the data center tax incentive program by addressing non-disclosure agreements (NDAs) that developers have used with local officials to keep key project details hidden from the public. This helps ensure communities have access to information about proposed facilities. View HB 2359.

We are tracking these bills, providing input to lawmakers, and advocating for strong provisions that protect clean water, clean air, affordable energy, and meaningful local control. We’ll continue to keep you informed as they progress.

Thank you for your continued support of Sierra Club Pennsylvania’s work to advance responsible data center policy and protect communities across the Commonwealth.