PA House Energy Committee considers first-ever regulations on data centers in Pennsylvania
Pennsylvania House Democratic Caucus October 23, 2025 | 11:41 AM
HARRISBURG, Oct 23 – Yesterday, PA House Energy Committee Chair Elizabeth Fiedler, D-Phila., convened a public hearing on legislation introduced by state Rep. Robert Matzie, D-Beaver. House Bill 1834 would authorize the Public Utility Commission to establish a regulatory framework for data centers operating in the Commonwealth.
Due to the explosive growth in artificial intelligence, machine learning, and video streaming, hyperscale data centers are rapidly proliferating across the nation. Pennsylvania has become a site of interest for data center development in recent years because of its wealth of energy and water resources, tax incentives, and Gov. Josh Shapiro’s vocal support for attracting the tech industry. However, the Commonwealth currently has no statewide standards for data centers and lacks oversight of these facilities.
"Data centers are becoming central to the modern economy and could bring substantial economic benefits, including jobs and tax revenue to Pennsylvania," said Fiedler. "However, as legislators, we have a responsibility to ensure that growth in this sector doesn’t come at the expense of families and small businesses who are already struggling with rising utility bills. This is not to mention the impacts on water, land, and other resources that we will need to consider in future legislation."
Matzie’s bill would direct the PUC to establish regulations on data centers, including requirements for security deposits, grid infrastructure improvements, and load restrictions during emergency conditions. The bill also stipulates that a public utility cannot charge ratepayers costs for electricity directly attributed to a data center.
Data centers are major consumers of electricity. They also present significant environmental impacts, namely their high rate of water consumption and potential use of fossil fuels for energy generation. House Bill 1834 requires that any new data center contracting with the PUC supply at least 25% of electricity from renewable sources.
“Data center development is the hot topic in the energy space. Lots of excitement, lots of concern,” said Matzie. “My legislation directs the PUC to place guardrails, with the intent of making sure your electric bill doesn’t go up because of that development. This is just the first step, and first bill, in what will be an extensive effort to address data centers, and their impact, in our Commonwealth.”
The hearing engaged a wide range of stakeholders, including consumer advocates and industry, labor, utility, and regulatory leaders.
“We are in support of commonsense legislation to help facilitate the buildout of data centers while protecting ratepayers and making sure our power grid continues to provide reliable power to all customers in Pennsylvania,” said Rob Bair, president of the PA Building Trades and Construction Council.
Darryl Lawrence, Pennsylvania’s consumer advocate, emphasized the financial burden placed on utility customers across the Commonwealth by the rapid development of energy-intensive hyperscale data centers. His testimony warned that ratepayers are “facing the risk of having to pay more for less reliable electric utility service in the near future due to projected shortfalls in electric supply.”
Additionally, increased load on the grid requires investment in new and upgraded energy infrastructure. According to expert assessments conducted by the OCA, ratepayers could face increases of anywhere from $215 to $350 annually if no regulatory action is taken.
On behalf of the Pennsylvania Utility Law Project, Patrick Cicero highlighted the importance of the bill’s protections for low-and moderate-income households, expressing support for the bill’s creation of a state LIHEAP fund, but also advocated for an increase to the fund amounts specified in the bill. “These are trillion-dollar companies, they can afford millions of dollars to contribute to LIHEAP,” he said.
Stephen DeFrank, Chairman of the Pennsylvania Public Utility Commission, emphasized that the enactment of H.B. 1834 would make future regulations governing large load interconnections legally enforceable to best protect the Commonwealth’s existing ratepayers.
The legislation must be considered for a vote by the committee before it can move to the House floor. Data center regulation has received bipartisan support nationwide in states like Texas, Georgia, Minnesota, and Nevada.