“The proliferation of huge data centers in the Lehigh Valley and other regions of our state is extremely concerning because their massive energy use, water use and noise output can impact residents,” said Sen. Coleman. “Rep. Walsh and I want to give our communities the opportunity to press the pause button on further development so they can adjust zoning policies to mitigate these concerns.”
[Note: Senate Republican Leader Joe Pittman (R-Indiana) said last week he has no plans to move data center legislation because he doesn’t “think we should be looking at individual bills right now.” “We want to make sure that we’re competing against our neighboring states, to make us attractive to responsible development overall.” Read more here.]
“As a Commonwealth, our local municipalities need to be in the driver’s seat when it comes to protecting their residents from development projects that pose significant risks to health, resource supply and residents’ way of life,” said Rep. Walsh. “The legislation Sen. Coleman and I have crafted empowers our local communities to create ordinances to regulate these projects on their terms without fear of litigation.”
[Note: The House already passed four bills to regulate A.I. data centers that are now in the Senate. Rep. Walsh voted against them all. Click Here to see summary.]
Repealing Tax Break
Senate Bill 1344 and House Bill 2532 would repeal the state Computer Data Center Equipment Exemption program enacted in 2021, which incentivizes data centers to locate in Pennsylvania by exempting computer data center equipment from the Sales and Use Tax when it is sold to, used or consumed in a certified data center by an owner, operator or qualified tenant.
The bills also direct the resulting revenue to the Motor License Fund for the sole purpose of reducing the Oil Company Franchise Tax, a tax that adds about 58 cents to every gallon of gas and 74 cents to every gallon of diesel fuel purchased in Pennsylvania.
18-Month Municipal Moratorium
Senate Bill 1345 and House Bill 2533 would give municipalities the option of placing an 18-month moratorium on both unapproved and new data center applications so they can revise zoning ordinances and establish policies addressing issues like power supply, water consumption, noise and setbacks which they determine protect the community’s interests.
Currently, municipalities, which decide local land use policies, are struggling to fully understand the myriads of environmental and community impacts of this new industry while also reviewing and revising their zoning ordinances to keep up with the influx of interest from data center developers.
The optional moratorium in Senate Bill 1345 and House Bill 2533 would help alleviate this problem.
“While we all appreciate the technological advances that are driving the development of new data centers, I am certain most Pennsylvanians want a more thoughtful approach to where and under what requirements they can operate and don’t want to subsidize them with tax incentives,” said Sen. Coleman. “The bills Rep. Walsh and I partnered on will do just that.”
“As a legislator, I took an oath to the Constitution of the Commonwealth of Pennsylvania,” said Rep. Walsh. “With this legislation, Sen. Coleman and I are working to fulfill this obligation under Article 1, Section 27, which reads ‘The people have a right to clean air, pure water, and to the preservation of the natural, scenic, historic and esthetic values of the environment. Pennsylvania’s public natural resources are the common property of all the people, including generations yet to come. As trustee of these resources, the Commonwealth shall conserve and maintain them for the benefit of all the people.’”
Click Here for the Colman/Walsh announcement.
Related Articles This Week:
-- Gov. Shapiro Releases Full Governor’s Responsible Infrastructure Development Standards (GRID) For A.I. Data Centers; New Local Government Data Center Planning Toolkit [PaEN]
-- PUC: Electric Utilities Changing Cost Of Electricity For Customers On June 1 From 0.05% to 19.8% [PaEN]
-- PUC Schedules In-Person, Telephonic Public Hearings On 13.1% Rate Increase Proposed By Peoples Natural Gas Starting June 2 [PaEN]
-- Choose Clean Water Coalition: Legislative Recommendations To Protect Pennsylvania's Waterways For The Future - Agriculture, Abandoned Mines, PFAS, Lead, A.I. Data Centers [PaEN]
-- Utility Dive: US Dept. Of Energy Grants PJM Request For Emergency Order To Curtail A.I. Data Center Use Of Electricity From The Grid And Go To Back-Up Generators To Cope With May 18-20 Hot Weather Alert [PaEN]
-- PJM Interconnection: Extends Maximum Generation Alert To May 19; Issues Pre-Emergency Demand Response Call To 3 Utilities; Hot Weather Alert Extended To May 20 For Mid-Atlantic Zone [PaEN]
-- North American Electric Reliability Corp Summer Reliability Outlook Says Record Additions Of Generation- Solar, Batteries And Some Natural Gas- Have Strengthened Readiness, But Elevated Risks Remain [PaEN]
-- Eastern PA Coalition For Abandoned Mine Reclamation-FYI: A.I. Data Center Accountability ToolKit
-- DEP Invites Comments On Stormwater Permit For PPL Electric Tek Park Transmission Line Project To Connect To Proposed A.I. Data Center In Upper Macungie Twp., Lehigh County [PaEN]
-- DEP Invites Comments On PECO Brandon Shores Retirement 500 kV Transmission Line Reconstruction Project Stormwater Permit In York County [PaEN]
-- DEP Accepting Comments On Stormwater Permit For The Mid Atlantic Interstate Transmission LLC Ashtabula-Erie West 345kV Rehabilitation Project In Erie County [PaEN]
NewsClips:
-- Scranton Times: Valley View School District Acknowledged Talks On Selling Archbald Schools If They Were Surrounded By A.I. Data Centers; District Joins Archbald Boro In Legal Battle Against Data Centers [PDF of Article]
-- Scranton Times - Chris Kelly Opinion: The ‘Pro-Human Party’ vs. A.I. Data Centers
-- Wall Street Journal: The Only Thing Growing Faster Than The A.I. Industry Is The Opposition Against It - Booed Commencement Speakers, Blocked Data Centers, Plummeting Poll Numbers
-- Fortune Magazine: Americans’ A.I. Hate Wave Might Just Be Gathering Steam: Data Centers Could Hike Power Costs In Some States Over 50% By 2030
[Posted: May 27, 2026] PA Environment Digest
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