(The Center Square) \u2013 Data center developers are increasingly targeting agricultural land for new projects, and residents in affected communities are mounting opposition, concerned about the industrialization of their farmland.<\/p>\n
At the same time, Gov. Josh Shapiro\u2019s administration is pursuing two priorities that can be difficult to balance: attracting data center investment while preserving Pennsylvania farmland. This creates a push-pull between the economic promise of data centers and concerns about farmland loss, local resource demands, and long-term community stability.\u00a0<\/p>\n
The question is whether both objectives can be met without compromising the agriculture industry or the rural character of the communities being asked to host these projects.\u00a0<\/p>\n
During Shapiro\u2019s budget address in February, he announced GRID<\/a> \u2013 the Governor\u2019s Responsible Infrastructure Development standards \u2013 a policy framework that sets strict standards for large-scale infrastructure projects like data centers.\u00a0<\/p>\n He stated, \u201cIf companies adhere to these principles, they will unlock benefits from the Commonwealth, including speed and certainty in permitting and available tax credits.\u201d<\/p>\n The standards are intended to reassure communities that economic development will not come at the expense of local resources \u2013 a concern especially acute in a state where agriculture contributes billions to the state\u2019s economy.<\/p>\n Pennsylvania leads the nation in preserved farms, Shannon Powers, press secretary for the Pennsylvania Department of Agriculture, told The Center Square.<\/p>\n Since voters approved the state\u2019s Farmland Preservation Program in 1988, Powers said, Pennsylvania has protected 6,704 farms and 665,585 acres in 58 counties from future development, investing more than $1.84 billion in state, county, and local funds.\u00a0<\/p>\n She noted the administration has continued that commitment, investing nearly $164 million to preserve 555 farms and 46,178 prime acres of farmland across the state \u2013 and that Pennsylvania agriculture supports over 48,800 farms, nearly 600,000 jobs, and contributes $132.5 billion annually to the state\u2019s economy.\u00a0<\/p>\n Powers said Shapiro recognizes agriculture as both part of Pennsylvania\u2019s heritage and essential to its economic future, naming it one of five key industries in his 10-year economic development strategy \u2013 the first of its kind in over two decades.\u00a0<\/p>\n \u201cOver the years, the Shapiro Administration has made meaningful investments to help support business expansion and transition planning, soil and water conservation, and strengthening the workforce and infrastructure on those farms and in the food processing and other businesses that rely on, and in turn, support those farms.\u201d<\/p>\n Those investments underscore the importance of preserving agriculture\u2019s long-term viability as new economic pressures create competition for the same resources farms depend on.\u00a0<\/p>\n The American Farm Bureau Federation<\/a> says this current trend creates a dual reality of opportunity and risk \u2013 agriculture depends on data centers for innovation and efficiency, and data centers increasingly compete with agriculture for access to land, water, and energy.\u00a0<\/p>\n Farmland is often cleared, flat, and available in large parcels, making it attractive to developers seeking sites near power grids, fiber routes, and favorable tax or regulatory environments. As more agricultural land is considered for rezoning, even unconverted farmland can gain speculative development value, raising land prices and rental costs for farmers.\u00a0<\/p>\n The concern is that once farmland is converted to industrial use, it is rarely returned to production. In high-demand areas, data center development can drive land prices sharply higher, and tools like the use of Section 1031 of the tax code<\/a> may further spread those price pressures as sellers reinvest proceeds into farmland elsewhere.<\/p>\n There are currently no comprehensive state regulations specific to data centers, and while communities like Lower Mount Bethel Township<\/a> organize to keep hundreds of acres of farmland from being industrially zoned, local and state lawmakers are actively debating legislation<\/a> to put guardrails in place.\u00a0<\/p>\n