(The Center Square) – Data center developers are increasingly targeting agricultural land for new projects. As a result, residents concerned about industrialization of their farmland are mounting opposition in affected communities.
By Lauren Jessop for The Center Square
Edited, supplemented with additional information from,
and republished by, Travels With The Post
At the same time, Gov. Josh Shapiro’s administration is pursuing two priorities that may be difficult to balance: attracting data center investment while preserving Pennsylvania farmland. Potentially at odds, some observers suggest, are the economic promise of data centers, and concerns about farmland loss, local resource demands, and long-term community stability.
It has yet to be seen whether both objectives can be met without compromising the agriculture industry, or the rural character of the communities being asked to host these projects.
During Shapiro’s budget address in February, he introduced the Governor’s Responsible Infrastructure Development standards, or GRID. It represents a policy framework intended to set strict standards for large-scale infrastructure projects like data centers.
“If companies adhere to these principles, they will unlock benefits from the Commonwealth, including speed and certainty in permitting and available tax credits,” the governor says.
The standards are intended to reassure communities that economic development will not come at the expense of local resources. That’s a concern especially acute in a state where agriculture contributes billions to its economy.
Photo by Grace David for The Center Square
A Leader in Farm Preservation
Pennsylvania leads the nation in preserved farms, according to Shannon Powers, press secretary for the Pennsylvania Department of Agriculture. Since its approval in 1988, the state’s Farmland Preservation Program has protected 6,704 farms and 665,585 acres in 58 counties from future development, Powers reports.
The investment: more than $1.84 billion in state, county, and local funds. Montgomery, Berks, and Chester County farms are among those benefiting from preservation efforts.
She noted the administration has continued that commitment, investing nearly $164 million to preserve 555 farms and 46,178 prime acres of farmland across the state. Pennsylvania agriculture, Powers says, supports more than 48,800 farms, nearly 600,000 jobs, and contributes $132.5 billion annually to the state’s economy.
Powers adds that Shapiro recognizes agriculture as both part of Pennsylvania’s heritage and essential to its economic future. The governor named it as one of five key industries in his 10-year economic development strategy.
“Over the years,” Powers says, the Shapiro administration “has made meaningful investments to help support business expansion and transition planning, soil and water conservation, and strengthening the workforce and infrastructure on those farms and in the food processing and other businesses that rely on, and in turn, support those farms.”
Those investments, she contends, underscore the importance of preserving agriculture’s long-term viability as new economic pressures create competition for the same resources on which farms depend.
Farm Bureau: With Opportunity Comes Risk
An American Farm Bureau Federation “Market Intel” report, issued in April, says this current trend creates a dual reality of opportunity and risk. Agriculture depends on data centers for innovation and efficiency, yet data centers increasingly compete with agriculture for access to land, water, and energy.
Farmland is often cleared, flat, and available in large parcels. That makes it attractive to developers seeking sites near power grids, fiber routes, and favorable tax or regulatory environments.
As more agricultural land is considered for rezoning, even unconverted farmland can gain speculative development value. Consequently, it raises land prices and rental costs for farmers.
Among concerns is that once farmland is converted to industrial use, it is rarely returned to production. In high-demand areas, data center development can drive land prices sharply higher. Tax code tools may further spread price pressures, as sellers reinvest proceeds into farmland elsewhere.
Currently, there are no comprehensive state regulations specific to data centers. In the uproar over data centers, rural communities are organizing to keep hundreds of acres of farmland from being industrially zoned. Local and state lawmakers are reacting too, and actively debating legislation to put guardrails in place.
Our local news reporting includes articles about state, county, borough, township, and village government decisions and activities within, or that affect residents of, Montgomery, Berks, and Chester PA counties. It also includes Traffic articles about private and public transportation issues. Find more government articles here.
From Sen. Pennycuick, A Protection Package
A legislative package to help local communities address concerns about large data center development in their neighborhoods was introduced Wednesday (May 27, 2026) by Red Hill PA-based 24th District state Sen. Tracy Pennycuick.
The legislative package, she says, includes:
• Requiring large data centers to bring their own power supply;
• Requiring data centers to provide a closed-loop water supply of reclaimed or recycled water systems of 100,000 gallons or more a day. Facilities unable to do so would be required to pay a large data center water-user mitigation charge. It would ensure water, wastewater, infrastructure, and conservation costs are not shifted onto existing ratepayers;
• Prohibiting state and local government agencies from entering into non-disclosure agreements for data center development. A growing practice among data center developers is to require local governments to sign non-disclosure agreements regarding proposed data center projects, “leaving the voices of residents out of the discussion,” Pennycuick says;
• Banning foreign-owned companies of concern from operating data centers in Pennsylvania;
• Preserving local control by requiring at least two publicly advertised public meetings for residents before a zoning decision may be made on a proposed hyperscale data center; and
• Creating a Pennsylvania Data Center Advisory Committee for the next 10 years. It would monitor development and recommend legislative or regulatory changes to protect residents, energy resources, water resources and the environment.
From Sen. Muth, A Proposed Moratorium
Royersford PA-based 44th District state Sen. Katie Muth in February proposed legislation that would impose a statewide three-year moratorium on hyperscale data center development.
In her co-sponsorship memo, Muth states Pennsylvania cannot afford to repeat past mistakes of approving large-scale industrial development first and confronting the consequences later.
She contends a moratorium would be a necessary step in protecting public health, safety, fiscal stability, and environmental integrity while ensuring decisions are informed, coordinated, and equitable.
“In his budget address, the governor said that we can play a leading role in winning the battle for AI supremacy … but we have to do it in a way that puts the good people of Pennsylvania first,” Muth says.
“If state government officials truly want to put the people of Pennsylvania first, they will enact this moratorium to allow local governments a chance to protect their residents.”
“The moratorium will also allow state regulators to use this thoughtful pause as an opportunity to update policies and regulations to protect our Commonwealth.”
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