Some States Fast Tracking Options For Data Centers

HARRISBURG, Pa. (AP) — The explosive growth of the data centers needed to power America’s fast-rising demand for artificial intelligence and cloud computing has spurred states to dangle incentives in hopes of landing an economic bonanza. It’s also eliciting pushback in places where an influx of data centers has caused friction with neighboring communities. Activity in state legislatures — and competition for data centers — has been brisk. Many states are offering financial incentives or tax breaks worth tens of millions of dollars. In some cases, those incentives are winning approval only after a fight or efforts to attach riders that require data centers to pay for their own electricity or meet energy efficiency standards.  In Pennsylvania, lawmakers are writing legislation to fast-track permitting for data centers. The state is viewed as an up-and-coming data center destination, but there is also a sense that Pennsylvania is missing out on billions of dollars in investment that’s landing in other states.  “Pennsylvania has companies that are interested, we have a labor force that is capable and we have a lot of water and natural gas,” said state Rep. Eric Nelson. “That’s the winning combination. We just have a bureaucratic process that won’t open its doors.”