Bills related to data center regulation moved forward Wednesday at the Pennsylvania State Capitol in Harrisburg.
The Pennsylvania House of Representatives voted 201-1 to approve House Bill 2496, which gives municipalities the authority to enact a temporary pause of up to 180 days on land-use applications for new data centers.
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The freeze would allow local governments time to adopt, amend, or repeal sections of their local zoning ordinances.
“This pause window allows local governments the time they need to thoroughly research, draft and pass comprehensive land-use ordinances pertaining to data centers,” said State Rep. Paul Friel, a Democrat from Chester County, the bill’s primary sponsor. “The bill gives our local officials necessary breathing room to update these ordinances, evaluating demands like water and energy usage and other considerations related to protecting our communities from potential harms caused by data center development.”
In a separate vote, the House moved 134-68 to advance House Bill 2650, which would codify Democratic Gov. Josh Shapiro’s Responsible Infrastructure Development (GRID) framework into state law.
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Per the proposed legislation, data center developers seeking state tax perks would be required to comply with strict accountability standards, mandatory annual reporting, and ongoing verification protocols. The regulations would apply strictly to future facilities and would not impact projects that have already secured development approval.
To be able to qualify for the incentives, developers would submit detailed applications outlining how their projects will meet specific state benchmarks.
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The GRID criteria focuses on energy affordability, boosting workforce and economic development, securing community engagement, and implementing environmental protections, lawmakers said.
Applications by data center developers must be certified by the Pennsylvania Department of Revenue and the state Office of Transformation and Opportunity.
Once certified, projects would gain access to the state’s Permit Fast Track Program, which accelerates approval timelines across multiple regulatory agencies.
To keep the certification, developers would be required to meet mandated spending targets and generate jobs paying above the state’s average wage.
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The framework mandates that companies seek public feedback and integrate clean energy requirements for large-scale operations.
The two bills approved by the House now move to the Senate for consideration.
The legislative actions come amid a national conversation about the environmental footprints and utility burdens of hyperscale data centers.
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The Data Center Coalition, a trade association representing tech giants including Amazon, Google, and Microsoft, previously raised concerns that the GRID standards would burden companies with a convoluted framework that could hinder future investment in the state, according to the Pennsylvania Capital-Star.
State Sens. Steve Santarsiero, a Democrat from Bucks County, and John Kane, a Democrat who represents parts of Chester Delaware counties, are drafting a Senate companion version of the GRID bill.
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State Sen. Jarrett Coleman, a Republican who represents part of Lehigh County and Upper Bucks County, has introduced a proposal seeking a moratorium of up to 18 months on all new data center applications.
In Falls Township, Amazon Web Services is currently constructing a multi-billion dollar data center and technology campus at the Keystone Trade Center.
