Pa. House Panel Advances Data Center Moratorium Bill

Close up photo of data center
Photo by panumas nikhomkhai on Pexels.com

HARRISBURG, PA — A Pennsylvania House committee on Wednesday unanimously advanced legislation that would allow municipalities to temporarily halt consideration of data center proposals while updating local zoning and land-use regulations, reflecting growing concerns about the infrastructure demands of the rapidly expanding industry.

House Bill 2496, introduced by state Rep. Paul Friel, D-Chester, would authorize municipalities to impose a pause of up to 180 days on data center application reviews through a local resolution. During that period, local governments could adopt, amend, or repeal ordinances governing data center development.

The proposal is designed to address what supporters describe as a gap in Pennsylvania’s planning laws as local officials face increasing interest from developers seeking sites for large-scale computing facilities tied to artificial intelligence, cloud computing, and digital infrastructure.

Under the bill, the pause would take effect from the time public notice of the municipal meeting agenda is issued. Applications submitted during the pause would be subject to any newly adopted regulations.

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“This bill gives Pennsylvania officials – who have an extremely tough job right now managing this unprecedented sector growth – the time needed to research, draft and pass comprehensive land-use ordinances updated and fit for data centers,” Friel said.

Pennsylvania municipalities currently cannot prohibit a specific type of development outright through zoning. Existing law allows local governments to pursue a municipal curative amendment, a process requiring officials to declare portions of their own zoning ordinance invalid before adopting revisions.

Supporters of the legislation argue that process is ill-suited to the pace of data center development because it can be circumvented if a developer files an application before new regulations take effect. The curative amendment process can also be used only once every three years.

Friel said local governments need additional planning tools as communities evaluate the potential impacts of data centers, including water consumption, energy demand, noise, and other infrastructure considerations.

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A large data center campus can consume electricity comparable to that of a city and may require substantial water resources for cooling operations.

State Rep. Kyle Mullins, D-Lackawanna, a co-sponsor of the bill, said the legislation would give municipalities time to assess infrastructure and environmental considerations before major projects move forward.

“Our local communities should never be forced to make permanent, long-term decisions under the ticking clock of a sudden data center application,” Mullins said.

State Rep. Kyle Donahue, D-Lackawanna, another co-sponsor, said municipalities often lack sufficient time to evaluate the implications of large-scale data center projects before development proposals are submitted.

The bill’s supporters also contend the legislation would eliminate what they describe as a “race to file” in which developers rush applications before local governments can revise zoning ordinances.

State Rep. Chris Pielli, D-Chester, said the measure would provide municipalities with greater authority to evaluate projects before making long-term land-use decisions.

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House Bill 2496 now advances to the full House of Representatives and is expected to receive floor consideration as early as next week.

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