Valley lawmakers respond to calls for pause on data center legislation

State Reps. Andrew Kuzma and Eric Davanzo support a 180-day pause on considering applications.

Two Valley legislators have responded to a push by a regional tech group to temporarily pause data center legislation, as the state legislature continues to develop regulatory frameworks for the industry.

As artificial intelligence continues to transform everyday life, the need for data centers that help power the new technology has become a contentious issue throughout the country. In response to the rise of data centers, state legislators have started creating more legislation related to them.

On Monday, the Pittsburgh Technology Council, an advocate for Western Pennsylvania tech firms, asked state officials to implement a temporary pause on data center-related legislation. The group stated that regulatory laws could slow down the economic benefits from AI and data centers.

“Pennsylvania has a once-in-a-generation opportunity to become America’s manufacturing center for AI infrastructure,” said Audrey Russo, president and CEO of the Pittsburgh Technology Council. “These aren’t just technology jobs in Pittsburgh or Philadelphia. These are manufacturing jobs in communities across the commonwealth — many of them in rural counties that have spent decades working to rebuild their industrial base.”

State Rep. Andrew Kuzma, R-Elizabeth Township, and Eric Davanzo, R-Smithton, recently voted in favor of House Bill 2496, a piece of legislation that would allow municipalities to put a 180-day pause on consideration of applications for data center proposals.

Last week, the bill passed through the House with an almost unanimous vote, with only one state representative voting against it.

According to Kuzma, the bill will give municipalities six months to update their zoning ordinances related to data centers. Kuzma also serves as a zoning solicitor for around 10 municipalities, which has given him a unique perspective on data centers and zoning.

“What most people don’t know is that if there is a use that is not elicited in a zoning ordinance, then that use is permitted as of right in any zoning district throughout an entire municipality,” Kuzma said. “So in other words, in Elizabeth Township, where I live, if a data center is not listed in the zoning ordinance, a data center developer could put one in a residential neighborhood, next to a preschool, next to a daycare, you name it.

“It takes months and months to adopt a new zoning ordinance and make amendments and adopt and have hearings and public comment and advertising, and I have some municipalities in our district that have zoning ordinances that are 40 years old or more. So to me, I’m all about economic development, jobs, but as it relates to this topic, I don’t think it’s fair for municipalities not to have the chance to update their ordinances.”

Kuzma said he understands where the Pittsburgh Technology Council is coming from, but noted that local governments need to be given the necessary tools to deal with the new environment.

“I think the best government is a government that’s closest to the people, which is local government, and I think that they need to be given a higher priority because they are the ones that have to live next to them (data centers),” he said. “So if there’s a local municipality in Washington County or Allegheny County that wants a data center, wants the jobs, wants the economic development, that’s on them, but they need to be the ones that make the decision, not a firm or a council representing outside interests.”

Davanzo said that HB 2496 was aimed at protecting Pennsylvania residents.

“Some of the municipalities that I represent do not have zoning ordinances (for data centers), so it’s important for me that we are protecting the taxpayer, the constituents, the everyday families that live here,” Davanzo said. “It’s important to me that we protect them and we put their needs first.”

Davanzo’s response to the Pittsburgh Technology Council is for data center developers to get off the “sidelines,” become involved and to reach out to officials and explain what their plans are for data centers and AI.

HB 2496 is not the only data center-related legislation in the state legislature.

Another piece of legislation, supported by Gov. Josh Shapiro, passed the state House last Wednesday. It would set stricter transparency and environmental requirements for data center developers who are looking for state sales tax exemptions.

Another piece of legislation, HB 2198, would eliminate sales tax exemptions for equipment purchased for data center development altogether. Yet another would require developers to submit annual reports outlining their water and power usage.

Most of the bills are still being considered in the state Senate.

TribLive contributed to this article.