The Harrisburg Regional Chamber welcomed Members this morning for the latest installment of its Policy Pulse Speaker Series featuring State Senator Tracy Pennycuick, Majority Chair of the Senate Communications and Technology Committee, who provided an in-depth look at one of Pennsylvania’s fastest-growing and most complex economic development issues: data centers.
As demand for cloud computing, artificial intelligence, online banking, telehealth and other digital services continues to grow, so too does the need for the physical infrastructure that powers them. Senator Pennycuick emphasized that while data centers are becoming an increasingly important part of Pennsylvania’s economy, the conversation is no longer about attracting them; it is about ensuring the Commonwealth is prepared to permit them responsibly.
“This industry isn’t going away,” Senator Pennycuick said. “The cloud isn’t really in the cloud- it’s in data centers.”
A major focus of the discussion centered on responsible site selection.
Rather than developing on productive farmland, residential communities, or undeveloped open space, Senator Pennycuick advocated for prioritizing Pennsylvania’s many vacant and more remote industrial properties, brownfields, and underutilized manufacturing sites.
She suggested that redevelopment incentives, expedited permitting, and targeted tax abatements could encourage developers to invest in existing industrial corridors while simultaneously revitalizing communities and putting long-vacant properties back into productive use.
Throughout the conversation, Senator Pennycuick stressed the importance of balancing economic development with local control.
She outlined several legislative proposals, including several she has authored,designed to improve transparency and accountability, including:
- Requiring large data centers to pay for electric grid upgrades associated with their projects rather than shifting those costs to existing ratepayers.
- Prohibiting developers from using non-disclosure agreements that prevent residents from receiving essential project information from local municipalities.
- Preventing foreign ownership of data centers due to national security concerns.
- Creating a statewide advisory committee to help policymakers keep pace with rapidly evolving technology.
- Preserving local decision-making authority so municipalities retain control over whether and where data centers are developed.
The Senator noted that misinformation has fueled concern in some communities. She encouraged residents and local leaders alike to seek factual information about topics such as water consumption, backup generators, noise, and employment before forming conclusions.
The Senator explained that electricity demand from data centers is projected to increase dramatically over the coming years, placing new pressure on Pennsylvania’s electric grid and infrastructure. She noted that these facilities present significant opportunities for investment, tax revenue, supply chain growth, and quality employment- but also require thoughtful planning around energy, water, land use, and community impact.
Following her remarks, Chamber & CREDC President & CEO Ryan Unger moderated a discussion with attendees that explored Pennsylvania’s economic competitiveness, redevelopment of brownfield and industrial sites, permitting challenges, small modular nuclear reactors, reliability of natural gas, manufacturing impacts, and opportunities for local supply chains.
The discussion reinforced the Chamber & CREDC’s ongoing commitment to helping educate local officials, businesses and community leaders as Pennsylvania navigates one of the most significant economic development opportunities and policy challenges of the coming decade.
As data center investment accelerates across the Commonwealth, thoughtful planning, community engagement and transparent policymaking will be essential to ensuring these projects strengthen Pennsylvania’s economy while protecting the interests of local communities.
About the Harrisburg Regional Chamber & CREDC
For 140 years, the Harrisburg Regional Chamber & CREDC has served as the region’s catalyst for economic prosperity. The organization combines business, community, and economic development services to enhance the region’s vitality and livability. The Chamber is a five-star accredited chamber through the U.S. Chamber of Commerce—a distinction held by fewer than 1 percent of chambers nationwide. CREDC is the region’s toolbox for economic development. It is the only Certified Economic Development Organization (CEDO) approved by the Commonwealth’s Department of Community and Economic Development to perform economic development activities regionally using Pennsylvania’s funding programs across Cumberland, Dauphin, and Perry counties.
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