Pennsylvania House Moves to Curb Data Center Zoning Powers
The legislation bars developers from using public utility status to preempt local land-use ordinances.
Updated on Oct. 27, 2026 in Data Centers
Live Poll
Should data center developers have the authority to bypass local zoning ordinances in your community?
The Pennsylvania House of Representatives has passed H.B. 2674, a bill that bars data centers from obtaining public utility status. The move is designed to ensure local municipalities retain zoning control over new facility development.
Why it matters
Data centers currently use public utility status to preempt local land-use ordinances and invoke eminent domain. This legislation seeks to reclaim municipal authority as the state manages a pipeline of 55 planned projects alongside 130 currently active sites.
The legislation targets the 130 active data centers and 55 additional facilities in the pipeline. It specifically blocks the use of public utility status, a designation that currently allows entities to function as regulated monopolies.
The players
Pennsylvania House of Representatives
The lower chamber of the Pennsylvania General Assembly responsible for drafting and voting on state legislation.
The details
Data centers have been using public utility status to bypass local municipal zoning ordinances. By prohibiting this status, H.B. 2674 prevents these firms from utilizing eminent domain—a legal power that allows the government or private entities with public status to seize private land for public use. The measure mandates that these companies must adhere to standard local land-use regulations rather than operating under the broader exemptions afforded to regulated utilities.
Timeline
2020: Pennsylvania energy costs began a period of increase that has reached over 70%.
October 20, 2026: The Pennsylvania House passed H.B. 2674 by a 202-1 vote.
The Tech Race
This legislation restricts the ability of data center developers to leverage public utility status to accelerate site acquisition. It aligns with broader efforts to recalibrate land-use policies in response to the rapid expansion of energy-intensive computing infrastructure.
The bill shifts power back to local governments for upcoming land-use decisions regarding the 55 proposed data centers. Residents in areas targeted for development will see these projects subject to standard municipal zoning ordinances rather than state-level utility overrides.
The takeaway
The bill now moves to the state Senate, where its passage will determine the future of zoning authority for energy-intensive facilities. Watch for Senate committee hearings in the coming weeks to see if the proposed restrictions survive lobbying efforts from industry stakeholders.
Further reading
Learn more about the infrastructure landscape in Data Centers.
Source note: This article includes information reported by Daily Local.
Live Poll
Should data center developers have the authority to bypass local zoning ordinances in your community?
