Pennsylvania data centers face increased oversight under new law

Pennsylvania Gov. Josh Shapiro signed a state budget that adds new oversight of data centers and the regional grid operator PJM Interconnection. Data centers in the state will now have to report their exact water and power use to the state each year, including total energy used the prior year, an estimate of next year's demand, and any steps taken to generate their own power or reduce carbon emissions. Centers that miss the reporting deadline face a $10,000-per-day fine until they file. The state's Department of Environmental Protection will also publish an annual report on data centers' combined energy and water use and environmental impact.

The budget also gives Pennsylvania's Public Utility Commission more power to check the accuracy of the electricity demand forecasts utilities send to PJM, which runs the regional power grid. Lawmakers said the current process lacks transparency, noting that one utility had projected its load growing more than 200% over nine years while another projected just 11% growth over the same period.

For homeowners, this doesn't change your bills or service directly, but it matters because data centers are a big driver of rising electricity demand in Pennsylvania, and utilities have pointed to that demand when asking regulators to approve rate increases or new power infrastructure. More accurate reporting on data centers' energy use could shape how those demand projections, and the costs tied to them, get justified to the public going forward.