Pennsylvania Considers Regulations for Data Centers Amid Rising Energy Costs
Pennsylvania officials are considering new regulations for data centers to mitigate rising energy costs for consumers, with advocates urging that these facilities should bear the expenses tied to their operations. Projected energy demand increases by 34% over the next 15 years have raised concerns about infrastructure costs being passed on to consumers. Additionally, legislation has been introduced to revoke a tax exemption for data centers, which has already cost the state $80 million and could lead to future losses of $235 million.
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At a joint hearing, witnesses emphasized the need for Pennsylvania to establish regulations to protect electricity consumers from costs associated with new data centers. Consumer advocate Darryl Lawrence urged the state to implement a law requiring data centers to cover costs directly tied to their operations.
PJM Interconnection's Asim Haque projected a 34% increase in energy demand over the next 15 years, with existing infrastructure costs being passed to consumers. The Pennsylvania Public Utility Commission proposed a 'model tariff for large load customers' to ensure data centers fund necessary infrastructure. Additionally, State Representative Greg Vitali introduced legislation to revoke a 2021 tax exemption for data centers, indicating it has already cost the state $80 million, with potential future losses of $235 million.
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