Pennsylvania Data Center Regulations Limited in Recent Budget
Pennsylvania's recent state budget only includes one regulation for data centers, mandating energy and water usage disclosure for those using over 10 MW annually. This minimal action comes amid significant public concern and substantial projected tax revenue losses from existing sales tax exemptions for data centers.
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Pennsylvania's $50.8 billion budget includes a single regulation for data centers, requiring disclosure of energy and water usage for facilities consuming over 10 MW annually. Lawmakers did not advance other proposed measures, including a ban on tax breaks for certain developments and local government moratoriums, despite 64% of residents viewing data centers negatively.
The existing sales tax exemption for data centers may cost the state $2 billion by mid-2031. Governor Josh Shapiro's plan to tie tax credits to environmental standards did not progress, as Senate Republicans did not support it. Advocacy groups are pushing for more comprehensive regulations, including those that govern utility interactions and clean energy sourcing for data centers.
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