HARRISBURG, PA — Pennsylvania lawmakers moved Monday to rein in the fast-growing data center industry, advancing legislation aimed at shielding consumers from higher utility bills as energy-intensive facilities tied to artificial intelligence and cloud computing spread across the state.
The Pennsylvania House Energy Committee voted to advance House Bill 1834, a proposal designed to protect ratepayers from rising costs associated with large-scale data center projects. In separate action, the committee also heard testimony on two additional bills that would increase transparency and give local governments new tools to manage development.
The surge in data centers nationwide has been driven by explosive growth in artificial intelligence, machine learning, and video streaming, placing increasing demands on power grids and water systems. State lawmakers said those pressures risk being passed on to everyday customers if left unchecked.
State Rep. Elizabeth Fiedler, a Philadelphia Democrat who chairs the committee, said consumer affordability and reliability are driving the legislative push. She warned that without oversight, large technology companies could shift infrastructure costs onto households already struggling with high energy bills.
House Bill 1834, sponsored by state Rep. Robert Matzie of Beaver County, was amended before winning committee approval. A public hearing on the bill was held in October 2025. If enacted, the measure would direct the Pennsylvania Public Utility Commission to establish a regulatory framework governing data centers operating in the Commonwealth.
Matzie said the legislation seeks to balance economic development with consumer protection, noting that while data centers can bring jobs and expand local tax bases, they can also strain utilities and raise costs if not properly regulated.
The committee also held a public hearing on House Bill 2150, sponsored by state Rep. Kyle Mullins of Lackawanna County, and House Bill 2151, sponsored by state Rep. Kyle Donahue, also of Lackawanna County. Testimony came from environmental advocates, industry representatives, and local government officials.
House Bill 2151 would direct the Department of Community and Economic Development to develop a model ordinance for data center development. Municipalities could adopt the ordinance in full or in part, though participation would be entirely voluntary.
Donahue said communities currently lack clear standards to address issues such as noise, facility size, water usage, and other neighborhood impacts tied to data centers. He said the bill would give local officials practical tools to protect quality of life while allowing development tailored to local conditions.
Ron Grutza, senior director of government affairs for the Pennsylvania State Association of Boroughs, told lawmakers the model ordinance would help municipalities reduce planning costs and bring consistency to how emerging land uses are handled statewide.
House Bill 2150 would require annual reporting on energy and water usage by data centers, giving policymakers data to assess impacts on utilities, infrastructure, and the environment.
Mullins said transparency is essential as the industry expands, arguing that companies seeking to operate in Pennsylvania should clearly disclose their resource demands.
Environmental groups backed the reporting proposal. Robert Routh, Pennsylvania policy director for Climate and Energy at NRDC, said statewide data collection would allow lawmakers to take informed, proactive steps to protect consumers, the power grid, and environmental resources as growth accelerates.
Pennsylvania’s move comes as other states, including Texas, Georgia, Minnesota, and Nevada, have adopted or considered bipartisan approaches to regulating data centers amid mounting concerns over cost, capacity, and long-term sustainability.
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