Pennsylvania Lawmakers Skip Over Data Center Moratorium Proposals and Tax Breaks
State lawmakers passed a bill requiring data centers to disclose energy and water usage
WASHINGTON, July 20, 2026 – Despite a flurry of proposed bills regarding data centers, the divided Pennsylvania legislature passed only one measure as part of the state’s $50.8 billion budget.
The passed bill mandates data centers using over 10 megawatts of electricity annually, enough energy to power roughly 7,000 homes, to disclose their energy and water usage. Environmental advocates called the change positive, but not especially impactful.
ate lawmakers left a sales tax exemption for data centers in place. The exemption is increasingly unpopular in Pennsylvania and expected to cost the state $2 billion in tax revenue by mid-2031.
According to Spotlight Pa on July 20, a spokesperson for Gov. Josh Shapiro (D) laid the blame for the lack of data center regulations on state Senate Republicans. He noted they “failed to act” on the governor’s plan to incentivize data centers to meet energy and environmental standards.
In a PCN interview, Pennsylvania House Majority Leader Matt Bradford, a Democrat, explained he was disappointed by the lack of action by Republicans to move legislation forward. The state's House is currently Democrat-led. He explained, “We desperately need the Senate to come forward and work with us in a bipartisan way to get that accomplished.”
The Republican-led Pennsylvania Senate has been working on legislation that would create data center moratoriums. Proposed Senate Bill 1345 has advanced in the state Senate. The bill would allow municipalities to enact 18-month moratoriums on unapproved and new data center applications.
Two other bills to pause hyperscale data center construction have been proposed, varying in the time that projects would be paused and some giving the power to enact moratoriums to municipalities and others imposing a statewide ban.
According to Spotlight Pa, State Senator Josh Pittman, a Republican, noted that Pennsylvania Republicans in the Senate are open to discussion and are reviewing the proposed moratorium measures, especially those that give authority to local governments.
As 64% of Pennsylvanians express concerns over data centers, the state House and Senate are working to pass bills seeking to regulate the facilities. Still, none of the legislation has made it to the governor’s desk.
