Data-center law in Pennsylvania

Subnational jurisdiction · as of 2026-09-06

Pennsylvania's data-center permitting spine runs through municipal zoning under the Municipalities Planning Code, air permits from the Department of Environmental Protection under the Air Pollution Control Act for generator fleets, and a certificate of public convenience from the Public Utility Commission where a project itself becomes a jurisdictional utility or seeks a dedicated service arrangement.

Pennsylvania's principal data-center incentive is a sales and use tax exemption on qualifying computer data center equipment, run by the Department of Revenue: Act 84 of 2016 first created a tax refund program under Article XXIX-D of the Tax Reform Code, and Act 25 of 2021 converted new certifications to an outright exemption effective January 1, 2022, with higher investment and job-creation thresholds than the refund program it replaced.

The program is Article XXIX-D of the Tax Reform Code, 72 P.S. §§ 2901-D et seq. (the exemption itself at 72 P.S. § 2931-D et seq.), as enacted by Act 84 of 2016 and amended by Act 25 of 2021.

01

Instruments on record

4 instruments on record, grouped by the family of approval each one governs.

Land use

Who decides whether a data center may occupy a site, and through what approval?

Municipalities Planning Code, zoning general powers

In force

53 P.S. § 10601

Applies to both

The governing body of each municipality may enact, amend, and repeal zoning ordinances to implement its comprehensive plan; this is the enabling authority under which a Pennsylvania municipality zones for, or excludes, a data center use, and the source of the rezonings and conditional or special use approvals a data-center siting case ordinarily proceeds through. The Municipalities Planning Code as a whole is recorded as reenacted and amended December 21, 1988.

Source: Full text of law

Energy and grid

What authorizations govern grid connection and onsite generation?

Public Utility Code, certificate of public convenience

In force

66 Pa.C.S. § 1101

Applies to both

A proposed public utility may not begin to offer, render, furnish, or supply service within Pennsylvania until the Public Utility Commission has approved its application and issued a certificate of public convenience describing the nature and territory of the service.

Source: Full text of law

Air and operations

What permits govern backup generators and ongoing emissions?

Air Pollution Control Act, plan approvals and permits

In force

Air Pollution Control Act, Act of Jan. 8, 1960, P.L. 2119, No. 787, as amended, § 6.1

Applies to both

The Department of Environmental Protection administers a stationary air contamination source permit system under the Air Pollution Control Act; a data center's backup generator fleet obtains plan approvals and operating permits under section 6.1 and the Environmental Quality Board's implementing regulations.

Source: Full text of law

Public agreements

What fiscal agreements attach a data center to its host jurisdiction?

Computer data center equipment sales and use tax exemption program

In force

72 P.S. §§ 2931-D to 2942-D (Tax Reform Code, Article XXIX-D, Subarticle C)

Effective 2022-01-01 · Applies to private

Beginning January 1, 2022, the tax otherwise imposed on retail sales and use is not imposed on the sale or use of computer data center equipment purchased for installation in a certified computer data center, for an owner, operator, or qualified tenant certified under this subarticle.

To be certified, an owner or operator must, on or before the fourth anniversary of certification, make a minimum combined new investment of $75,000,000 and create 25 new jobs if the data center is in a county of 250,000 or fewer people, or invest $100,000,000 and create 45 new jobs in a larger county, and thereafter pay at least $1,000,000 in annual compensation to employees at the site. The department may not certify a computer data center under this subarticle after December 31, 2032.

This exemption program, added by Act 25 of 2021, replaced a narrower sales and use tax refund program that Act 84 of 2016 had created under the same article (Subarticle B, now closed to purchases after December 31, 2021); a computer data center already certified under the prior program before July 1, 2021 is deemed to meet this program's certification requirements and keeps its certification for the remainder of its qualification period.

Source: Full text of law

Every entry cites the instrument it describes. None of it is legal advice: verify a citation before relying on it. Full sourcing: read the methodology. The rest of the record: all jurisdictions.