In his annual budget address, Gov. Josh Shapiro introduced standards for data center developers that would apply in Muncy Township near Pennsdale should it be picked to host a high-tech facility.

Discussion about township zoning ordinance changes needed to add strict guidelines regarding data centers occurred in late 2025.

On Tuesday, Shapiro introduced the “Governor’s Responsible Infrastructure Development Standards – a set of criteria for data center developers to qualify for resources the state can provide to “encourage and hasten their construction.” He also called for the divided legislature to codify them into law.

“Too many of these projects have been shrouded in secrecy, with local communities left in the dark about who is coming in and what they’re building,” Shapiro said, adding, “That needs to change.”

Data centers started out as privately owned, tightly controlled on-premises facilities housing traditional information technology infrastructure for the exclusive use of one company.

Recently, they’ve evolved into remote facilities or networks of facilities owned by cloud service providers (CSPs). These CSP data centers house virtualized IT infrastructure for the shared use of multiple companies and customers, according to IBM.

Data centers are high-impact uses, with substantial electric demand, potential noise from cooling and backup generation, with possible environmental and public safety implications, according to Terri Lauchle, a township supervisor and chairperson of the board in Muncy Township.

On Oct. 9, 2025, associate township solicitor Zachary DuGan emailed the “township,” to recommend that an ordinance amending the zoning regulations to allow data centers in the industrial zoning district be adopted as soon as possible, according to Lauchle.

The information was an exhibit in Lauchle’s unsuccessful attempt to sue the former township board and township in a preliminary injunction request denied.

In her request, Lauchle stated how DuGan’s email communication acknowledged that there may be some interest in placing a data center in or around the township area and recommended “fast-tracking the ordinance to accommodate that interest.”

During his budget address, the governor said he was aware of public concerns about data centers, which he shared, and noted how he wanted the U.S. to be leading such development, not communist China.

“I know Pennsylvanians have real concerns about these data centers and the impact they could have on our communities, our utility bills, and our environment,” he said. “And so do I.”

The objective of the development standards, however, is to hold the data center developers accountable to strict standards if they want the state’s full support.

Lauchle said there’s been “no comprehensive planning effort, impact study, or detailed standards developed before this ordinance was pushed.”

Data center developers will be required to commit to pay for their own power, hire locally, be transparent with Pennsylvania communities, and adhere to high water-conservation standards, Shapiro said.

“First, developers must commit to bringing their own power generation – or paying entirely for the new generation they’ll need and not saddling homeowners and businesses with added costs because of their development,” Shapiro said.

Second, developers must commit to strict transparency standards and direct community engagement.

In her civil action against the former board in the township, Lauchle requested to see a full review by the township planning commission and zoning hearing board were appropriate; at least two public advertised hearings; detailed standards governing siting, utilities, environmental impacts, and public safety.

Lauchle added how a “resident petition” would explain that keeping data centers unlisted at present protects the township and its residents by ensuring any proposal must undergo a full public process instead of being “quietly enabled through rushed ordinance changes.”