Walsh
WILKES-BARRE — Rep. Jamie Walsh on Tuesday announced his continued efforts to strengthen local protections and increase transparency for data center proposals in the state.
Walsh’s bills are companion measures to proposals introduced by Sen. Jarrett Coleman, R-Bucks/Lehigh.
Together, Walsh said the bills would empower local municipalities to protect their residents from excessive burdens by allowing them time to update zoning ordinances, while also eliminating a tax exemption for data centers and redirecting revenue to help reduce the state’s gas tax.
“Data centers are a big topic of discussion in my (117th) district and one in which I am well-versed,” said Walsh. “By sponsoring these bills, I am continuing my efforts to prevent unchecked data center expansion by mandating transparency from the industry statewide.”
One bill Walsh is sponsoring would place a moratorium on data center applications so municipalities could choose and have time to revise their ordinances and establish conditional use policies addressing issues like power supply, water consumption, noise, and setbacks.
Walsh said this would give municipalities time to establish appropriate guardrails for the industry in their land use policies.
The second bill, Walsh said, would repeal Act 25 of 2021 — the Computer Data Center Equipment Exemption Program — which exempts certain data center equipment from the state’s sales and use tax.
“While this incentive was intended to attract data centers to Pennsylvania, the recent surge in development shows it is no longer necessary,” Walsh said. “Repealing it would allow us to redirect those funds to the Motor License Fund and help reduce the Oil Company Franchise Tax, which adds roughly 58 cents per gallon of gasoline and 74 cents per gallon of diesel.”
Walsh released co-sponsorship memos on May 4, with bills to follow. Once introduced, the bills will be assigned to committees for consideration.
Data centers a hot topic
At last week’s Back Mountain Chamber Legislative Breakfast, Walsh said data center development is the number one issue in his 117th Legislative District, evidenced by hundreds of concerned citizens who attend every public meeting held on the issue.
“There are seven municipalities in my district that are faced with data center developments,” Walsh said at the breakfast. “We must take the mask off of these data center projects so the people can be aware of what is happening in their towns.”
Walsh said he is calling for an 18-month moratorium on data center developments.
“We have to put some guardrails on these projects,” Walsh said. “We need to slow it down so we do it right. The proposed Pennsylvania Ratepayer Protection Act is a proactive, sensible piece of legislation to help address potential rising energy costs with the construction of new data centers,” Walsh said.
He said House Bill 2372 introduces a three-part strategy to lower costs and stabilize the energy market:
• Requires data center developers to fully fund their energy infrastructure and grid connections, ensuring no additional costs are passed on to consumers.
• Mandates large data centers to build or secure their own power sources rather than relying on the public grid, reducing competition for the limited electricity supply.
• Requires utilities to enter long-term power purchase agreements on behalf of consumers, ensuring ratepayers have equal access to stable, lower-cost energy supplies.
Together, Walsh said these requirements are expected to deliver immediate reductions in electricity prices; increase the available power supply across the PJM region; protect consumers from subsidizing large-scale energy users; and support responsible growth of the data center industry.
“By requiring data centers to meet their own energy needs and ensuring utilities secure long-term power for residents, the legislation aims to rebalance supply and demand, leading to lower prices and a more resilient energy market,” Walsh said.
House Bill 2372 is awaiting assignment to a committee.
Local journalism matters, and your support makes it possible. You can help sustain this work by making a donation or choosing one of our subscription options. Subscribers enjoy valuable benefits, including full access to our e-edition, a reduced ad experience on timesleader.com, and more.
Your support helps ensure independent, high-quality local news remains available today and for future generations. Thank you for standing with local journalism.