First-ever data center regulations in Pennsylvania history pass House
Pennsylvania House Democratic Caucus March 24, 2026 | 5:29 PM
HARRISBURG, March 24 – On Tuesday, the PA House passed H.B. 1834, legislation that would create the first-ever regulatory framework for data centers in Pennsylvania. The bill is a multifaceted response that would protect ratepayers from even higher utility bills, increase the construction of renewable energy, and fund low-income energy assistance programs. The bill was introduced by state Rep. Robert Matzie, D-Beaver.
Pennsylvania has become a site of interest for widespread data center development, yet the Commonwealth currently has no statewide standards for data centers and lacks oversight of these facilities.
As a result, ratepayers are often left footing the bill for upgrades to grid infrastructure required by large-load projects like data centers. The immense amount of energy needed to power data centers is also a major driver of rising energy prices, which have increased faster than inflation over the past six years. Consequently, one in six Pennsylvania families are struggling to keep up with their bills, and utility shutoffs rose 38% in 2025.
“No one’s electric bill should ever go up because a data center has located to Pennsylvania, but we need to plan ahead to make sure that doesn’t happen,” Matzie said. “It’s possible to protect ratepayers while still allowing the Commonwealth to reap the economic benefits data centers can bring. Those goals are not mutually exclusive—as long as we get the right regulatory framework in place. This bill does that.”
The legislation would prohibit utilities from shifting costs related to data centers onto regular ratepayers, meaning families and small businesses are shielded from subsidizing Big Tech’s buildout. Data centers would need to cover the full cost of grid upgrades, transmission, and reliability needs.
“Energy is not a luxury. But as the cost of food, housing, and childcare keep rising, it’s becoming harder and harder for working people just to keep their heat and lights on. It is outrageous that right now in our Commonwealth, parents are skipping meals and prescription medications just so they can afford to keep the lights on,” said state Rep. Elizabeth Fiedler, D-Phila., majority chair of the House Energy Committee. “House Bill 1834 is a critical step to make sure working families and seniors in PA don’t pay for the buildout of the data center industry in our state. This is a vital bill that will save Pennsylvania residents money and get more energy online in PA. It’s a huge win for working people and for renewable energy!”
Data centers would also be required to contribute to a Low Income Home Energy Assistance Program Enhancement Account. In Pennsylvania, 300,000 households depend on LIHEAP for heating assistance in a typical year. As extreme and unpredictable weather becomes more common due to climate change, the ability to afford household heating and cooling systems can mean life or death.
The new funding stream that would be created by H.B. 1834 would allow the Department of Human Services to expand LIHEAP and create a summer cooling program.
“The Pennsylvania Utility Law Project applauds the House of Representatives for passing H.B. 1834—a critically important piece of legislation that seeks to create a regulatory framework to mitigate the energy impacts of data centers in Pennsylvania. The bill's protections ensure data centers pay for the infrastructure costs they cause, build new clean generation, and make meaningful contributions to rate assistance and energy conservation programs that serve hundreds of thousands of economically vulnerable Pennsylvanians each year. Pennsylvania families already face unaffordable energy bills—they must not be forced to bear the additional cost of data center growth,” said Elizabeth Marx, executive director of the Pennsylvania Utility Law Project.
Data centers also present significant environmental impacts, namely their high rate of water consumption and potential use of fossil fuels for energy generation. House Bill 1834 would require that increasing amounts of the electricity supplied to data centers come from new in-state renewable sources like wind and solar paired with battery storage.
It would also create a fund to support new clean energy resources. Data centers would pay into this account unless certified as having brought their own clean energy. The bill would also establish environmental regulations for backup generators.
“The House just took a critical step to responsibly manage Pennsylvania’s rapidly growing data center industry by passing a strong set of guardrails that will protect consumers, require new clean firm energy to be built in the Commonwealth, and invest in affordability through support for LIHEAP, energy efficiency, and additional clean energy resources,” said Robert Routh, Pennsylvania policy director for the Natural Resources Defense Council. “House Bill 1834 rightly recognizes that tools like battery storage and demand response can strengthen grid capacity, and it sets a clear expectation that data centers must fully pay their own way to operate in Pennsylvania. We look forward to working with the Senate to advance this legislation—any final bill must maintain these core protections.”
By requiring that this renewable energy be generated in Pennsylvania, the bill supports the creation of good, family-sustaining jobs that would remain in the Commonwealth. The bill’s clean firm energy requirements would drive new in-state investment in reliable, zero-emission resources, strengthen PA’s grid, and protect customers while ensuring data centers contribute their fair share. The bill would support Pennsylvania jobs and its long-term energy independence by spurring construction of new clean generation and storage projects.
“House Bill 1834 is a good pathway to accomplishing the goals of responsible data center development while incentivizing renewable energy to be included in the buildout of data centers,” said Rob Bair, president of the Pennsylvania State Building Trades.
“Today, the Pennsylvania House of Representatives chose people over Big Tech profits by passing H.B. 1834. As our Commonwealth faces an unprecedented stampede of data center development, this bill serves as a vital first step in shielding working families and local businesses already struggling amid a growing affordability crisis," said Molly Parzen, executive director of Conservation Voters of Pennsylvania. "This legislation is more than just a consumer protection measure; it models how to respond to the threats posed by data centers. By mandating that 32% of the energy for these facilities come from clean energy, we are limiting the impact of the digital boom on our air quality and on families’ energy bills. And because of critical amendments, this clean energy will be built right here in Pennsylvania, creating high-quality, family-sustaining jobs that stay in our communities.”
“Today’s passage of H.B. 1834 reflects a growing recognition that large-scale data center development must be managed thoughtfully and responsibly,” said Jennifer Quinn, legislative and political director of Sierra Club of PA. “This bill takes meaningful steps to protect ratepayers, support energy affordability programs, and begin integrating cleaner energy resources. But it is not the final word. We will need to build on this framework to keep pace with the scale of demand and its potential impacts.”
The bill is supported by the Consumer Advocate and the Pennsylvania Utility Law Project, which focus on protecting low-income residents from rising costs; and environmental groups including Conservation Voters of Pennsylvania, the Natural Resources Defense Council, Sierra Club of Pennsylvania, Pennsylvania Environmental Council, Clean Air Council, PennFuture, and the Solar Energy Industries Association. The bill would not remove the authority that local governments have to place zoning restrictions on data centers.
House Bill 1834 now moves to the state Senate for further consideration.