Bresnahan proposes bill to strengthen local control over data center projects

WASHINGTON DC, (WOLF) — Congressman Rob Bresnahan has introduced legislation he says would protect local governments from legal challenges by data center developers and require approved projects receiving federal incentives to provide tangible benefits to the communities where they are built.

The Republican congressman, whose district includes much of Northeastern Pennsylvania, announced the introduction of the Local Control Protection Act on Wednesday.

The proposal comes amid growing debate over large-scale data center development in the region, including concerns from residents about infrastructure demands, water consumption, utility costs and community impacts.

"We should never let billion-dollar corporations supersede the voices of those who live in the community," Bresnahan said in a statement. "My legislation will protect small boroughs and townships who decide against a data center from the legal wrath of billion-dollar corporations."

According to Bresnahan's office, the legislation is designed to address situations in which developers challenge local zoning decisions after municipalities reject proposed projects.

Supporters of the bill argue that local governments often lack the financial resources to defend themselves against lengthy court battles with large corporations.

"When a local planning commission or borough council votes to deny a data center, a well-resourced developer can, and often will, sue the local municipality to override their decision," Bresnahan's office said in a release announcing the measure.

Under the proposal, municipalities and counties that deny data center applications would receive protections from being sued in federal court if their decisions are based on documented concerns involving public health, infrastructure, water resources, community character or similar issues.

The bill would also prohibit federal agencies from approving permits related to a data center project if the developer is actively pursuing legal action seeking to overturn a local zoning denial.

"Over the past year, we have watched developers try to strong-arm their way into our communities," Bresnahan said. "The greed of these out-of-state corporations should not dictate how people in Northeastern Pennsylvania live their lives."

The legislation would also establish requirements for developers that seek federal incentives for approved projects.

Under the proposal, qualifying developments would be required to enter into publicly filed, legally enforceable community benefit agreements that include:

• Plans to mitigate impacts on roads, water systems and utility infrastructure.
• Environmental and noise monitoring requirements.
• Local workforce utilization plans documenting efforts to hire workers from the region before recruiting from outside the area.
• Partnerships with apprenticeship programs, career and technical education centers and community colleges.
• Preference for local contractors and subcontractors when qualified firms are available.

Bresnahan's office said the measure is intended to ensure that communities approving data center projects receive measurable benefits in return for hosting them.

The bill would apply to large-scale data center developments exceeding a specified power demand threshold and is expected to face consideration in Congress in the coming months.