For state lawmakers, artificial intelligence is transitioning from a new technology to assimilate into daily life, towards a physical industry with real economic development opportunities… and risks.

In this session alone, Pennsylvania lawmakers have introduced 28 bills or memos related to artificial intelligence; 17 of them deal with how ai operates in society, three of them commission studies of the technology.

Nine of them deal with data centers, energy production, and tax credits all linked to the artificial intelligence industry.

Across the United States—huge data centers, and the energy to fuel them, are being built in response to artificial intelligence demands. Pennsylvania is no different.

For example, Homer City in Indiana County has plans for a natural gas-powered data center campus. The developer is investing $10 billion to build a 3200 acre complex, that could bring 1000 permanent jobs.

Building projects of this size require a lot of coordination and planning with local and state governments.

“I think policy should be focused on enabling speed permitting to get air infrastructure moving, said Joanna Devon, executive director of the economic development group AI Strike Team.

The Pittsburgh based organization wants Pennsylvania to be the world headquarters for “Physical AI”. Devon says that cutting back on red tape for physical infrastructure projects will keep Pennsylvania attractive to the industry. 

“We are competing not just with other states. We're competing globally right now,” Devon said.

Several of the bills and memos introduced to the Pennsylvania legislature relate to streamlining permitting at the state level.

SB939 also looks to limit some local zoning laws related to large data center projects. Statewide organizations for local governments have shown hesitancy at the proposal.

“Local officials really know their communities well,” said Kyle Kopko, executive director for the County Commissioners Association of Pennsylvania. "They know what the infrastructure is like, they know what residents need. They know what first responders and emergency services would need to do if there was a situation at these new facilities."

From storm water drainage to water resources to energy supply concerns… there are many impacts anticipated from the large data center projects.

Sen. Katie Muth has a memo out to address the impact data centers could have on residential energy bills.

“I don't think that these are insurmountable challenges, but they're all things that we need to think about and be thoughtful about before we go into any sort of these major projects,” Kopko said.

County governments want to avoid unintended consequences of the state limiting local control; but many recognize the benefits projects can bring.

“This is going to result in new property tax for locals. It could result in a number of new residents moving into an area,” Kopko said. "Presumably, it's going to result in more economic activity if the jobs are in the area."