A Slippery Slope: A New Data Centers Bill Could Strip Power Away from Pennsylvania Communities.

PSR PA Remains Opposed to HB 2151

House Bill 2151, a proposal aimed at guiding how municipalities regulate data centers, has now passed the Pennsylvania House of Representatives. While amendments were made during the legislative process, PSR PA remains opposed to this bill and urges the Pennsylvania State Senate not to advance it.

If the state wants to help municipalities, it should provide neutral guidance and support, not a model ordinance embedded in law that could be used to pressure or challenge local decision-making. Communities deserve the freedom to adopt strong, protective standards without fear of legal retaliation or state interference.

At first glance, HB 2151 may seem helpful. It offers what is described as a “model ordinance” to guide local governments as they respond to the rapid expansion of data centers. But in practice, this particular approach creates real risks for communities.

Why This Bill Is Problematic

1. HB 2151 could pressure municipalities to weaken protectionsEven though the ordinance is described as “advisory,” putting a state-developed model into law creates a gray area. Developers could argue that local governments are being unreasonable if they adopt stronger rules than the state’s model. It would be left up to courts to decide what is right and how to interpret this.

Even if those arguments don’t ultimately succeed, the threat of legal challenges can be enough to push municipalities, especially smaller ones with limited budgets and limited legal knowledge, into adopting weaker standards just to avoid costly disputes.

2. HB 2151 raises concerns about conflicts of interestThe Commonwealth of Pennsylvania is actively trying to attract data center development. At the same time, the state is proposing to guide how these projects are regulated at the local level.

Are these guidelines listed in HB 2151 being developed solely in the public interest, or are they influenced by the desire to fast-track development? Recent public records requests have shown communication between state officials and industry representatives about speeding up permits and shaping local frameworks. It is also important to note that the Local Government Commission, which defines itself as “a specialized local government resource…providing objective expertise in many facets of local government” is composed of appointed elected officials, not subject-matter experts in local land use. This means that individuals who may not live in or directly represent affected communities would be shaping recommendations that impact them. 

3. HB 2151 could undermine local control over timeLocal governments have long been responsible for land use decisions in Pennsylvania. This allows communities to shape development based on their unique needs, whether that’s protecting public health, managing noise, or safeguarding water resources. Pennsylvania has over 2,000 municipalities, and each of them have unique needs and desires for how they wish to shape their communities.

By putting a state-developed ordinance into law for one specific industry, HB 2151 sets a precedent. Over time, this could open the door to more state involvement in local zoning decisions, weakening community control.

Our Position on Data Centers

PSR PA has serious concerns about the impacts of data centers, including their high energy use, water consumption, noise, and potential public health effects. We believe communities should have the ability to carefully regulate or reject these developments based on local conditions.

At the same time, we strongly support giving municipalities the tools they need to protect residents. This includes access to unbiased information, technical assistance, and resources to understand the full impacts of data centers.

State support should come in the form of neutral guidance, not prescriptive language embedded in law that can be used to constrain local authority. Municipalities must retain the ability to adopt robust protections against data centers without risking interference or legal pushback.

What Comes Next

As HB 2151 moves to the Senate, PSR PA urges State Senators to take a closer look at these concerns and reject the bill in its current form. Pennsylvania can support communities and protect public health, but this bill, as written, falls short of that goal.