Challenging Data Centers 101

Written by Jack Kenyon, Fair Shake Legal Intern, Spring 2026

With  roughly 4,000  sites in the U.S. alone, data centers are rapidly expanding across the globe, including in Pennsylvania, Ohio, and West Virginia.  These facilities come with significant challenges to our environment. Wherever they are built, data centers put stress on the regional demands for electricity, water, and land. The metastasizing of this resource-reliant industry has created controversy and unrest in numerous  local communities.   

Despite the  perceptions  that data centers  operate  in somewhat of a regulatory “gray area,” they are subject to regulation. Unfortunately, the legal frameworks surrounding this industry remain fragmented, site-specific, and quickly evolving as our various bodies of government attempt to respond to the industry’s rapid growth.  

How are data centers currently regulated?   

Data centers are subject to government regulation by federal, state, and municipal laws. The applicable statutes and regulations governing data centers will vary based on where the facility is located and how the site is designed to operate, as laid out in their permitting and zoning application materials. Of particular importance are how the data center will access water, what energy sources will power the operation, and what kind of toxins the site will emit or discharge.   

The following are commonly referenced to review compliance:   

    • Clean Air Act

    • Clean Water Act

    • Air / Emissions  

    • Water Use  

    • Waste / Discharge 

    • Energy Infrastructure Requirements

    • Zoning Law

    • Noise Restrictions

    • Public Safety Regulations and Reports

Most laws that regulate data centers were passed before this technology existed. Thus, many communities have expressed frustration when data centers come to their area—citing gaps in policy considerations and the need for greater public participation in decision-making. We are providing the following information to help communities better understand how to navigate the existing legal field and outline some proposed changes. 

Who is allowed to regulate data centers?   

Each level of government has some power to regulate data centers. The federal government has broad power to regulate data centers. Any powers not exercised by the federal government, are reserved for the state government. Thus, until the federal government passes legislation to regulate data centers, the states have the broadest authority. States typically grant local governments the power to regulate activities that affect public health and safety. However, each state varies significantly by how much authority they give local government, and how state courts interpret public health and safety considerations.  

Disclaimer  

The legal and policy options available will vary depending on the jurisdiction you live in. This blog is for general educational purposes only and is not legal advice. Similarly, this blog merely outlines policy proposals for general education and does not recommend any proposals. At Fair Shake, we believe communities are best equipped to decide which legal and policy options are best for their area.  

Our nonprofit law firm offers legal consultation regarding data centers operating in Ohio, Pennsylvania, and West Virginia. Please reach out to us if we can be of assistance. Please also check our events, as we regularly host legal clinics that offer free one-time consultations.  


State Regulation Opportunities   

A common concern with the development of data centers is the strain these facilities might impose on local resource supplies, particularly with respect to energy and water consumption. States have broad authority to recognize these external costs and hold data centers accountable through regulations. According to MultiState, last year 40 states considered 267 data center-related bills. Most states were focused on better understanding how the data centers would impact the energy system (126 bills).

Outlined below are some state legislative proposals that the communities we work with have been most interested in: 

  • Requiring that large scale data centers (definitions vary, but roughly 64 MW or more) cover costs of connecting to electricity grid (Texas SB 6 (2025).PJM Legislators Collaborative, Ltr. to PJM, Nov. 17. 2025. Virginia SB 253 and HB 1393.)  

  • Require that a portion of the data center be supported by renewable energy (Pennsylvania SB 724 (2026))

  • Prohibit new data center sales tax exemptions (Ohio SB 374 (2025-2026))

Generally, within the Ohio River Valley, state responses to data centers are mixed. In Ohio and Pennsylvania, legislatures are considering various data center bills that would restrict development in the regions, while West Virginia is trying to centralize their regulatory authority in designing a state-wide program incentivizing data center development that can’t be overridden by local government.    

  

Municipal Regulation Opportunities  

Municipal regulation  remains  the front-line of defense for individuals and communities  seeking  to restrict or oppose data center development.  Often two primary considerations for local action are enacting zoning changes or moratoriums.  

Zoning

Local governments have broad authority to regulate zoning, especially as it relates to concerns of public health, safety, and welfare. Due to this broad authority, most localities should have the authority to enact an ordinance which regulates where data centers may operate, establish noise restrictions, require native landscape buffering, and expressly require on-site energy production to abide by zoning code applications. For a great resource, check out the Penn Future Data Center Model Ordinance. Please note that the model ordinance may need to be altered to abide by laws within your jurisdiction.   

Moratoriums

When local governments are concerned that they are not prepared for large-load data centers, they may issue a moratorium to give the locality time to conduct research and respective policy changes. The legal authority for moratoriums varies for each jurisdiction.  

Ballot Referendum Opportunities  

Ballot initiatives may be an untapped resource  for  individuals, communities, and states  alike  in the fight against data center development. Generally speaking:  

  • Ballot initiatives are processes that allow  individuals to amend existing, or to propose entirely new, laws. Such proposals are placed directly on a state or municipal ballot for  voter approval.  

  • Referendum is the process by which voters have the authority to approve or reject laws and policies that are already in place. 

The availability, scope, and efficacy  of  these ballot  initiative  methods vary significantly across Pennsylvania, Ohio, and West Virginia. Even where these strategies are  permitted, efforts to enact change are  often  faced with tremendous  procedural burdens and legal  challenges. 

  • Ballot initiatives and the  referendum  process are constitutionally protected in Ohio. The state has  seen a host  of community movements that have grown to influence and enact legislation, both at local and state-wide levels.  Ohio  also  has  a  relatively direct  process by which individuals  and groups  from the state  may  attempt  to  reform local  zoning  issues. 

    Citizens can propose constitutional amendments, propose statutes, and challenge recently enacted laws through  referendums. Ohio allows  its  citizens to do the same in their  own  municipalities,  including  matters of zoning. 

  • Pennsylvanians  have  a very limited  pathway toward directly partaking in state-wide  ballot  initiatives and  referendums. The constitutional  right for citizens to  utilize  such tools is limited to bonds and most ballot referendums are instead permitted by state statute. 53 Pa. C.S. § 2942-2944. Statewide  questions typically need to be crafted and approved by  the General Assembly  to  appear on the ballot.  

    At the local level,  Pennsylvania law allows ballot referendums to be brought by the governing body or petition of the electors. Ballot questions are typically brought about  by the legislative body itself. 53 Pa. C.S. § 2942-43. Pennsylvanians  seeking to resist data center development will be better able to resist legal challenges by coordinating such initiatives with local authorities. For example, a ballot referendum can be placed on the ballot by local council, rather than petition by signatures of the electorate.

    Alternatively, coalition groups may be able to bring a local ballot referendum by petition. Coalitions should take effort to be clear whether it is a home rule charter amendment or ordinance being proposed, and that the local governing body has the authority to effectuate the ballot referendum proposal. 

    Attending town council meetings  (or the equivalent governing  body’s  meeting), is an excellent venue for Pennsylvanians to  try and enact change.  Allowing for  public comments and  questioning  are a common part of the format  for town council meetings, often  facilitating  an opportunity for community members to voice their concerns and recommendations.   

  • West Virginia’s framework  resembles that of Pennsylvania; state legislatures must propose and  approve  any  state-wide  ballot  initiatives. Since 1985,  the  state  lawmakers  have  considered  fewer than 30 ballot measures, rejecting  roughly half  of the proposed measures and reforms.  

    At the  local level, West Virginia  law  protects certain cities’ authorities to create and amend their own charters  under WV Code §8-4-8.  

    The West Virginia legislature spurred rapid and irresponsible industry growth, with a special focus on data centers, by passing laws that usher in a new era of state-backed corporate support. In April 2025, the state passed HB 2014  and HB 2002; the former attracted  data centers via business and tax incentives for large-scale energy infrastructure, while the latter streamlined  energy  emissions  permitting processes that  reduced  the state’s  regulatory barriers for approving such development.  Since these laws passed, data center proposals have popped up across the state despite community pushbacks and political pledges to restore local control.

Mapping Out Your Game Plan  

We hope the above information provides helpful considerations and resources for communities that are seeking to challenge data centers.  

Our team recognizes that the issues communities face regarding data centers vary significantly, as do the policy and legal levers that may be available to them. In response, we have created a tool for mapping out strategies to challenge these operations. Click here to check out our data center decision trees!

 

More Questions?  

Reach out to our team at info@fairshake-els.org or (412) 664-5546. 

Stay in touch!

 
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