Committee bars data centers from public-utility status, citing local control and rate concerns

Representative Piali urged the committee to support House Bill 26 74, saying the measure would protect ratepayers and preserve local control over land-use decisions by explicitly prohibiting commercial data centers from qualifying as public utilities. "Since 2020, as data center construction has accelerated across our commonwealth, Pennsylvania's energy costs have surged by more than 70%," Piali said, and he told members the state has about 130 data centers with another 55 proposed or planned.

Piali warned that if data centers were classified as public utilities they could preempt local zoning, exercise eminent domain and operate as regulated monopolies — outcomes he characterized as risks to local communities and ratepayers. The committee considered an amendment clarifying that the statutory term "public utility" does not include a commercial data center; members voiced little opposition, the amendment passed, and the bill passed as amended unanimously.

The transcript records the sponsor's figures and concerns; the committee's adopted amendment addresses the sponsor's central risk by excluding commercial data centers from public-utility status. The action moves the bill forward from committee.