Pennsylvania has quietly become a key battleground for AI data center legislation. With about $90 billion in announced AI, energy, and data center investments, it ranks as the fourth fastest-growing state for data center development. Projects are happening or being permitted across the state, from Lackawanna to York County, Lancaster to Lehigh Valley, and nearly every major hyperscale tech company has a presence or is seeking one in the Keystone State.
Many companies are realizing, sometimes too late, that the General Assembly has been active. Lawmakers from both parties have introduced major bills on AI transparency, data center rules, energy load responsibility, local zoning, and state oversight.
This post breaks down the current Pennsylvania AI data center legislation that companies operating in or entering the market need to understand right now.
The Bills That Matter
HB 2150: Annual Energy and Water Reporting
Sponsored by Rep. Kyle Mullins (D) of Lackawanna County, House Bill 2150 would require data centers to submit annual reports to the Department of Environmental Protection detailing total energy and water consumption from the prior calendar year, along with measures taken to reduce that consumption. The bill passed the House Energy Committee on March 2 on a party-line vote of 14 to 12 and is before the full House for consideration. It was also amended to exclude businesses with small data-center operations from the reporting requirement.
HB 2151: Model Municipal Ordinance for Data Centers
House Bill 2151, sponsored by Rep. Kyle Donahue (D) of Lackawanna County, directs the Department of Community and Economic Development to develop a model ordinance for municipalities to regulate data center development. It also passed the Energy Committee 14 to 12 along party lines. Under the bill, the model ordinance would be optional guidance rather than a state mandate.
Sen. Rosemary Brown’s Residents First Legislative Package
In late February 2026, Sen. Rosemary Brown (R) announced a myriad of AI data center legislation focused on “residents first” messaging. Brown represents Lackawanna, Monroe, and Wayne counties, the region with one of the highest concentrations of proposed data center development in the entire state.
Brown’s AI data center legislation is centered around a few, distinct proposals targeting different pressure points in the development process.
Pre-Application Meeting Requirement: Introduced alongside Sen. David Argall (R), this bill would require data center developers to hold a formal pre-application meeting with local officials before submitting any permit application. More specifically, the legislation would require data center developers to meet with host municipality officials at least 30 days before submitting a formal planning application to review the proposed project with zoning, planning, and elected leaders. Developers would also need to provide “will-serve” letters from water, sewer, electric, and fiber providers demonstrating that sufficient infrastructure is available at full buildout and outlining any potential impacts on local residents.
Pre-Application Water Analysis for Data Centers: The legislation would require developers proposing a data center to submit a third-party water impact study to the host municipality at least 30 days before filing a formal development application. The study must evaluate projected water usage, water quality, and long-term supply sustainability across the project site and the surrounding 20-mile region, be publicly available upon request, be funded by the developer, and be followed by a five-year post-development analysis comparing conditions before and after construction.
Data Center Rezoning and Residential Protections: Circulated in February 2026, this proposal would establish zoning-level protections for residential communities near proposed data center sites, creating a buffer and review framework before rezoning can be granted. Specifically, the legislation calls for hyper-scale and major data center development to only occur in industrial and mining zones, with micro data center development being allowed on commercial property with “necessary buffers to protect” residential properties nearby.
LBFC Study on Technology Viability: This proposal would direct the PA Legislative Budget and Finance Committee to undergo a study on the future validity and viability of data center technology and facilities.
The Proposed Three-Year Moratorium
Sen. Katie Muth (D) has circulated a memo announcing legislation to establish a three-year statewide moratorium on the development of hyperscale data centers and related infrastructure, including power generation and transmission facilities needed to support them. During the pause, state agencies and local governments would be given time to study potential environmental, energy, and community impacts, develop regulatory frameworks, and conduct baseline and cumulative impact assessments before additional projects move forward. Similar moratorium efforts have been proposed or adopted in several other states and local jurisdictions across the country.
SB 939: The AI Regulatory Sandbox
Meanwhile, Senate Bill 939, sponsored by Sen. Greg Rothman (R) would establish an Office of Transformation and Opportunity and create an Artificial Intelligence, Data Center, and Emerging Technology Regulatory Sandbox Program. This would allow collaboration between industry and state agencies, streamline permitting through a “Fast Track” process, and set consistent development parameters while preserving local control over land use decisions. However, the bill was amended to remove provisions that fast-tracked data center approvals and limited local zoning authority, while requiring data center developers to secure their own power supply rather than relying on existing grid capacity.
HB 1834: PUC Oversight and Ratepayer Protections
Sponsored by Rep. Robert Matzie (D), HB 1834 would direct the Pennsylvania Public Utility Commission to establish a regulatory framework governing how data centers connect to the grid and who bears the cost of new infrastructure buildout. The bill would also require data centers to obtain at least 25 percent of their electricity from renewable sources, including nuclear power generated in Pennsylvania.The bill was amended and passed the House Energy Committee in early February 2025. A hearing on the bill was previously held in October 2025 by the House Energy Committee.
Governor Shapiro’s Take on AI and Data Centers
Governor Josh Shapiro has staked out a nuanced position on Pennsylvania AI data center legislation and development. He wants Pennsylvania to win the AI economy and has said so publicly and repeatedly. The $90 billion in investment that has flowed to the state reflects a real effort by his administration to recruit this industry.
At the same time, Shapiro has grown notably more cautious as community opposition has built. In his February 2026 budget address, he told the General Assembly: “We need to be selective about the projects that get built here.” His FY 2027 budget proposal includes AI consumer protection requirements and a research partnership with the University of Pennsylvania to advise on responsible AI use across state government. His administration has already run a 14-agency pilot program with OpenAI, a proof-of-concept that Pennsylvania is willing to move quickly when it sees a compelling case for AI adoption.
The Public Opinion Problem for Data Centers in Pennsylvania
A recent Quinnipiac poll showed that 68% of Pennsylvanians would be opposed to building a data center for AI in their local community, compared to just 20% in support. This includes 53% of Republicans opposed, 81% of Democrats opposed, and 67% of independents opposed.
What This Means for Your Pennsylvania Government Affairs Strategy in 2026
The chance to influence Pennsylvania AI data center laws isn’t gone, but it’s closing. The companies that will be best positioned when the dust settles are the ones doing several things simultaneously right now:
Tracking the full legislative landscape, not just the bills that directly name their industry or project
Proactively building relationships with the legislature, administration and key agency secretaries
Developing a credible local community engagement strategy that gives state-level allies something tangible to point to
Pennsylvania is setting the rules for AI and data center development right now. Companies involved in shaping those rules will have a very different experience than those who only read about them later.