Curious About Pending Data Center Legislation? (you know you are...)

• SB939 (Senator Greg Rothman) Establishing the Office of Transformation and Opportunity and the Artificial Intelligence, Data Center and Emerging Technology Regulatory Sandbox Program; and providing for powers and duties of office and for permits for high impact data centers that have their own power. The program shall enable a PARTICIPANT to obtain limited access to the market in this Commonwealth to test an innovative artificial intelligence, data center and emerging technology product or service without obtaining a license or other authorization that might otherwise be required. ...The Application must contain a description of the innovative artificial intelligence, data center and emerging technology product or service to be tested, including statements regarding the following: (i) How the innovative artificial intelligence, data center and emerging technology product or service is subject to licensing or other authorization requirements outside of the program, including a specific list of all State laws, regulations and licensing or other requirements that the applicant seeks to have waived during the testing period. CONFIDENTIALITY.--INFORMATION SUBMITTED FOR THE PURPOSES OF AN APPLICATION TO THE OFFICE SHALL BE DEEMED CONFIDENTIAL AND NOT SUBJECT TO THE PROVISIONS OF THE ACT OF FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-KNOW LAW. Of note: Defines "High impact data center" as (4) Has a critical IT load of 50 megawatts or higher. Amended in Senate Committee on Communications & Technology February 4, 2026. Read the full bill here: https://www.palegis.us/legislation/bills/2025/sb0939

Summary (Legiplex)

SB 939 would create a new Office of Transformation and Opportunity within the Governor’s Office and assign it broad responsibilities for coordinating major economic development projects, with a particular focus on artificial intelligence, data centers, and other emerging technologies. The bill also establishes the Artificial Intelligence, Data Center and Emerging Technology Regulatory Sandbox Program, which would let approved participants test innovative products or services in Pennsylvania with temporary waivers from certain state licensing or authorization requirements, subject to application review, consumer disclosures, reporting, and oversight by the office and relevant agencies. The bill further defines and regulates “high impact data centers,” meaning data centers with at least 50 megawatts of critical IT load. Owners of such facilities would have to notify the office when they meet the threshold, and the office would confirm designation. The bill also limits how local governments may regulate these facilities, requiring ordinances to allow reasonable development and prohibiting local rules that are more restrictive than those applied to comparable industrial uses in areas such as construction conditions, height, screening, fencing, lighting, noise, operations, and hours of operation. It also creates a High Impact Data Center Permit Program to coordinate permitting across agencies, set approval timelines, and deem certain permits approved if deadlines are missed. In addition to the data center provisions, the bill gives the new office a central role in expediting interagency cooperation, tracking transformative economic development projects, and producing annual reports to the Governor and the General Assembly. The office would be staffed by a Chief Transformation and Opportunity Officer appointed by the Governor, and it would be responsible for coordinating permit reviews, economic development strategy, and project due diligence across state agencies. The general sentiment reflected in the available voting history appears favorable, at least at the committee-amendment stage, with a 10-0 vote to adopt an amendment in the Senate Communications & Technology Committee. No committee transcript was provided, so there is no recorded debate to indicate broader support or opposition. The bill’s structure suggests a pro-development, pro-innovation approach aimed at attracting large-scale technology investment and speeding regulatory review. Likely points of contention include the bill’s preemption-like limits on local zoning and operational controls for high impact data centers, the deemed-approval permitting mechanism, and the sandbox program’s temporary waivers from existing licensing and regulatory requirements. Supporters are likely to emphasize economic development, job creation, and regulatory certainty, while critics may focus on local control, environmental and land-use impacts, consumer protection, and whether the office should have authority to waive or streamline existing state rules.

Impact

SB 939 would add new state-level structures and procedures affecting economic development, technology regulation, land use, and permitting. It would create the Office of Transformation and Opportunity in the Governor’s Office, establish a regulatory sandbox for AI, data center, and emerging technology products and services, and impose new notification, reporting, disclosure, and oversight requirements on participants and high impact data center owners. It would also alter the practical effect of local ordinances and state permitting rules by limiting local restrictions on high impact data centers and requiring expedited review, with deemed approval if certain permit deadlines are missed.

Sentiment

The available voting history suggests strong committee support for at least one amendment, with a unanimous 10-0 vote to adopt an amendment in the Senate Communications & Technology Committee. Because no hearing transcript or floor vote is provided, the broader sentiment can only be inferred from the bill’s design: it is clearly framed as a pro-growth, pro-innovation measure intended to attract investment and accelerate development of large data centers and emerging technology projects. At the same time, the bill’s regulatory waivers and local ordinance limits indicate that any opposition would likely center on oversight, local autonomy, and consumer or environmental safeguards.

Contention

The main areas of contention are likely to be the bill’s restrictions on municipal regulation of high impact data centers, the 120-day permit timelines and deemed-approval provisions, and the sandbox program’s ability to waive otherwise applicable state licensing or authorization requirements. Local governments and land-use advocates may object to limits on zoning, noise, lighting, and operational controls, while regulators or consumer advocates may question whether the sandbox provides enough safeguards for consumers and whether the office should have authority to approve market testing before full compliance with existing laws. Supporters, by contrast, are likely to argue that these provisions are necessary to make Pennsylvania competitive for large-scale technology investment and to reduce delays in project delivery.

• SB991 (Senator Camera Bartolotta) The Data Center Siting and Permitting Act aims to create a "one-stop" accelerated permitting process for new data centers to spur economic development, The DEP would be required to identify at least 15 potential sites, with five located at existing or decommissioned power plants, The legislation proposes a two-phase expedited approval process, including a $10,000 application fee, and includes provisions for prevailing wage jobs for projects developed under this framework; the accelerated permitting provisions would be available until December 31, 2040. This has been in the Environmental Resources & Energy Committee since September 5, 2025. https://www.palegis.us/legislation/bills/2025/sb991

• SB1359 (Senator Katie Muth) An Act imposing a Statewide moratorium on hyperscale data center development and permitting; and providing for enforcement. This bill defines a hyperscale data center as ...ii) has an aggregate monthly maximum demand of either of the following minimum thresholds: (A) for an electric distribution company whose peak load is equal to or above 2,500 megawatts, 20 megawatts; or (B) for an electric distribution company whose peak load is less than 2,500 megawatts, one megawatt. (2) For the purpose of calculating the aggregate minimum thresholds under paragraph (1). Moratorium (a) Imposition.--A moratorium is imposed on: (1) The development or permitting of any new construction or expansion of a hyperscale data center in this Commonwealth. (2) The expansion of a data center that is not currently a hyperscale data center but, if expanded, would become a hyperscale data center. (3) Data center infrastructure such as new power generating facilities and utility transmission infrastructure required to power a hyperscale data center. (b) Duration.--The moratorium is in effect for 36 months from the effective date of this subsection. Referred to Local Government [Senate] June 4, 2026. Read the full bill here: https://www.palegis.us/legislation/bills/2025/sb1359

• HB502   Supported by Governor Shapiro's administration as a "one-stop-shop," it aims to speed up energy development by allowing the board to override local zoning, causing significant controversy over local control vs. state development . Referred to the Energy Committee April 23, 2025. https://www.palegis.us/legislation/bills/2025/hb502

• HB1834 The Data Center Act: The bill requires the PA Public Utility Commission (PUC) to ensure that data centers pay their own way, preventing their infrastructure costs from being passed on to regular ratepayers; ensure that at least 25% of their electricity comes from "clean firm" sources, such as nuclear, solar, or wind  (it appears that they can BUY credit if they cannot meet this requirement which really is cheating); required to pay into a fund that helps low-income Pennsylvanians with their heating and summer cooling bills; and requires data centers to secure their financial obligations to the state with letters of credit, so if they leave, residents aren't stuck paying for the infrastructure they built. Referred to Consumer Protection & Professional Licensure in the State Senate on March 31, 2026 for further consideration. https://www.palegis.us/legislation/bills/2025/hb1834

• HB2150 Cited as The Data Center Energy and Water Reporting Act, this provides for annual reporting of energy consumption and water consumption by data centers; and imposing a penalty. 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. This only applies to data centers that have a peak electric demand of 10 MW or greater. Measures to improve water or power efficiency, protect the environment or generate electricity do not appear to be mandatory categories, including any potential future measures to generate electricity or other form of energy on or OFF site. Referred to Environmental Resources & Energy on April 23, 2026. Read the full bill here: https://www.palegis.us/legislation/bills/text/PDF/2025/0/HB2150/PN3029

• HB2151 Directs the Department of Community and Economic Development (DCED) to create a model zoning ordinance to help local governments regulate data centers which municipalities can adopt or adapt to regulate data center construction, covering noise and vibration limits, emergency response plans, aesthetics, and parking, allowing towns to better manage these facilities. They keep saying the municipalities will not be required to use this in whole or in part. This bill is Re-reported as amended, April 13, 2026, third consideration and final passage, referred to the Local Government Committee (state senate) on April 23, 2026 (124-77). This was passed alongside HB2150 which establishes required annual energy and water reports. https://www.palegis.us/legislation/bills/2025/hb2151

• HB2198  As Amended on Second Consideration, House of Representatives, June 24, 2026. Section 2. The act is amended by adding a section to read: Section 3003.26. Data centers.--(a) unless certified under Article XXIX-D prior to February 3, 2026, a computer data center shall not be eligible for tax benefits under Article XVIII-C or XIX-B or the act of October 6, 1998 (p.l.705, no.92), known as The Keystone Opportunity Zone, Keystone Opportunity Expansion Zone And Keystone Opportunity Improvement Zone Act. (b) as used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Computer data center." All or part of a facility that may be composed of one or more businesses, owners or tenants, that is or will be predominantly used to house working servers or similar data storage systems and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. Section 3. This act shall take effect immediately. Read the full bill here: https://www.palegis.us/legislation/bills/2025/hb2198

• HB2246 An Act amending Title 27 (Environmental Resources) of the Pennsylvania Consolidated Statutes, in water resources planning, further providing for State water plan and providing for covered data centers; and promulgating regulations. This act requires notification and reporting from a covered data center related to water use and withdrawals. Upon review permits will be issued under The Clean Streams Law. Referred to Environmental Resources & Energy [Senate] on May 1, 2026. Read the full bill here:https://www.palegis.us/legislation/bills/2025/hb2246

• HB2359   An Act amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in computer data center equipment incentive program, further providing for definitions, for application for certification, for eligibility requirements relating to sales and use tax refund program, for notification, for eligibility requirements relating to sales and use tax exemption program and for notification and records. Eligibility requirements: ...(C) nondisclosure agreements.--on or before the first anniversary of certification, the owner or operator of a computer data center must certify that an agreement has not been entered into, or will not be entered into, with an agency, or any entity acting on behalf of an agency, that relates to the construction, development or location of the facility and requires confidentiality, nondisclosure or otherwise restricts the agency from disclosing information to members of the public. (d) applicability.--(1) the requirements under subsections (b) and (c) shall not apply to a computer data center with a peak electric demand of less than 10 megawatts. (2) subsection (b)(2) shall not apply to a commercial data center that has commenced construction prior to the effective date of this subsection. This bill is in committee. Read the full bill here: https://www.palegis.us/legislation/bills/2025/hb2359

• HB2496  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. The governing body of a municipality may adopt a resolution at a public meeting to impose a pause on the consideration of applications for data center developments under a land use ordinance. During the pause, the number of days provided to satisfy time limits imposed by law in review, hearing and decision on an application received after the effective date of the pause shall be suspended and tolled as of the date received and shall resume upon the expiration of the pause. (b) The duration of the pause may not exceed 180 days and shall be retroactive to the time at which the governing body of the municipality gave public notice of the meeting as required under 65 Pa.C.S. § 709(c.1) (relating to public notice. Of note: Data center is defined as ...2. HAS AN UNINTERRUPTIBLE ENERGY SUPPLY OR GENERATOR BACKUP POWER, OR BOTH, COOLING SYSTEMS, TOWERS OR OTHER TEMPERATURE CONTROL INFRASTRUCTURE; OR (3) HAS A PEAK DEMAND OF 25 MEGAWATTS OR GREATER. Referred to Local Government [Senate] on June 25, 2026. Read the full bill here: https://www.palegis.us/legislation/bills/2025/hb2496

• HB2650  An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; in computer data center equipment incentive program, providing for certification prohibition; providing for Governor's Responsible Infrastructure Development certification and standards; and imposing duties. This relates to the Governor’s Responsible Infrastructure Development (GRID) Certification & Standards. This act provides for Alternative compliance payment." A per-megawatt-hour payment at the alternative compliance payment rate made to PEDA by a computer data center if the computer data center elects to satisfy its clean firm energy procurement requirement under section 2903-D.1(a)(5)(vii)(B) through payment in lieu of procurement. A GRID project that does not procure incremental clean firm energy sufficient to satisfy the required amounts under subclause (I), (II) or (III) in a given year shall make an alternative compliance payment to PEDA. create at least 200 jobs during the construction phase of development, and 50 new jobs each paying at least 125% of Pennsylvania's average Statewide wage on or before the fourth anniversary of GRID certification. It does NOT specify that these would be filled by local residents. They need only to provide a hiring plan for recruiting and training local workers, including local workforce participation in site preparation and site construction, and use registered apprenticeship programs and skilled construction labor. Referred to Finance [Senate] June 25, 2026. Read the full bill here: https://www.palegis.us/legislation/bills/2025/hb2650

Rep. Robert Freeman is seeking a resolution that would direct the Joint State Government Commission to produce a report investigating how heat from data centers can be captured and repurposed. Waste heat recovery is a system that increases energy efficiency, lowers operating costs, and reduces emissions by turning waste heat into a valuable public resource, seeing opportunities to redirect heat from data centers for community benefit and potential economic and environmental benefits of waste heat recovery.

Rep. Robert Leadbeter is seeking to introduce legislation requiring public utilities to clearly display any rate reductions or bill credits provided to customers as a result of hosting data center infrastructure within their region. Your enclosed utility bill includes a cost reduction of ($ amount) for this billing period. His notice on your electric bill would read. “This reduction is made possible by data center operations in your region and related energy usage agreements. This reduction is required or enabled under Pennsylvania law and is separate from standard rate adjustments approved by regulators.” This legislation is about transparency and accountability, ensuring that when large scale energy users enter a region and impact the grid, the public can clearly see whether and how they benefit.