In a move to enhance oversight of data centers, Pennsylvania lawmakers have advanced two bills aimed at regulating these facilities' energy and water consumption.

While acknowledging the potential benefits of data centers, legislators emphasized the importance of monitoring their impact on the power grid, water resources, and local communities.

Consequently, the state is taking steps to hold data centers accountable for their resource usage, with both bills passing by a narrow 14-12 vote.

The first, House Bill 2150, mandates that data centers submit annual reports detailing their energy and water usage.

Supporters argue this will help the Commonwealth understand how these facilities could affect electric rates and environmental resources.

One proponent stated, "Data centers are a growing topic across our Commonwealth, and they have potentially wide-ranging impacts on families' bills, our communities, and our environment. It's both common sense and our responsibility as a legislature to better understand the possible impact of this rapidly growing industry."

Advocates also contend that better data is needed on the increasing number of data centers before issues arise.

An amendment adopted before the vote allows for estimated water and energy use, removes the requirement to report waste heat, and exempts smaller facilities from these reporting obligations.

Opponents argue that this legislation could discourage AI investment in the state.

One critic expressed concern that the bill specifically targets a single industry in Pennsylvania and questioned the necessity of a regulatory agency collecting this data, citing potential security risks.

Another lawmaker emphasized the importance of consensus to advance the bill through the House and Senate to the governor's desk.

They remarked, "This is the technical revolution of our country. We led in the first one; is Pennsylvania going to lead in the next one? We should bring forth legislation that our House and Senate agree on to move Pennsylvania forward. We can't miss out on this opportunity, and I fear that, as written, this legislation is faulty, and we won't succeed. We must succeed."

The second bill, House Bill 2151, directs the Department of Community and Economic Development to develop a voluntary model zoning ordinance for municipalities considering data center development.

This ordinance would address water feasibility studies, documentation of water permits, and proof of adequate electric services.

Opponents argue that this approach may not suit all areas.

One critic noted, "This legislation, which would create a model ordinance, suggests a one-size-fits-all state-approved model ordinance when, in fact, the Commonwealth is very diverse, and this particular model may be problematic in some areas but not in others."

Since the ordinance is voluntary, municipalities are not required to adopt it.

These measures are part of the Commonwealth's efforts to ensure that data centers are regulated as they become increasingly prevalent nationwide.

We will continue to provide updates as these bills progress through the legislature.