Montco’s Pennycuick Behind Bill to Make PA an AI Leader

Have you ever wondered why Silicon Valley is in California? Or why New York City, Seattle, or Austin, Texas, are well-known as high-tech hubs?
How can Pennsylvania–known for its soft pretzels, Amish farms and overly-enthusiastic sports fans–lure AI and data centers?
Enter state Sens. Greg Rothman (R-Cumberland) and Tracy Pennycuick (R-Montgomery).
The pair of Republicans have teamed up to propose legislation in Harrisburg to make Pennsylvania the premier destination for data center and Artificial Intelligence (AI) development. Senate Bill 939 would establish the Commonwealth Opportunity Zone (COZ), mandating statewide regulatory relief. They believe the COZ would make the entire state a desirable place for these rapidly growing industries, creating jobs and economic opportunity along the way.
“AI is fundamentally transforming our society, and its rapid growth is generating unprecedented demand for data centers, along with them, good-paying jobs,” said Rothman. “This legislation was crafted to get government out of the way of progress and make Pennsylvania the top choice for every AI company looking to invest resources and create jobs.”
Unlike geographically restricted zones that pick winners and losers, the statewide COZ would make every corner of Pennsylvania attractive to these vital job opportunities, ensuring broad-based economic benefits, rather than limiting advantages to a select few government-designated sites.
The legislation would “fast-track” permits for the facilities, ensuring quick and predictable approval. To ensure equity and consistency, the bill also establishes reasonable ordinance parameters, allowing data centers to operate under the same straightforward rules as similar industrial facilities, while preserving local control.
“AI innovation is moving at a fast pace. It’s imperative that the commonwealth keep up to take advantage of this expanding sector and remove regulatory barriers that hinder the establishment of data centers,” said Pennycuick. “At the same time, the state must ensure local control over these sites while opening up opportunities throughout Pennsylvania.”
Pennycuick, who chairs the Senate Communications and Technology Committee, has championed the use of AI.
In May, she took part in a joint Senate-House policy committee hearing to spearhead AI development in the state. She is also an outspoken advocate for more protections in the online space. Gov. Josh Shapiro recently signed into law a bill she sponsored to put the brakes on “deepfake” scams.
“We’ve seen criminals impersonating loved ones to swindle the elderly; fabricated political videos and calls intending to fraudulently mislead and misinform voters; and malicious digital content targeting celebrities and private citizens alike,” Pennycuick said. “This law gives law enforcement the tools they need to fight this digital deception yet does so in a responsible manner, protecting First Amendment rights and preserving valid expressions of parody, satire and other forms of free speech.”
Another key component of the SB 939 is the establishment of a statewide AI data center, and an emerging technologies “regulatory sandbox.” A regulatory sandbox is a framework set up by a government allowing innovative products, services, or business models to be tested in a controlled environment with real customers, but under relaxed regulatory requirements for a limited time.
This innovative, collaborative framework would enable industry leaders to work directly with state agencies to identify and remove unnecessary and outdated regulations, thereby streamlining the development process and accelerating innovation.
SB 939 was formally introduced in conjunction with U.S. Sen. Dave McCormick’s Inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University in Pittsburgh. The summit featured President Donald Trump and members of his cabinet, alongside government officials, global leaders in energy and AI, international investors, and representatives from labor and trade.
“Sen. McCormick’s Energy and Innovation Summit showcased Pennsylvania’s historic opportunity to both lead and power the nation’s AI boom,” Rothman said. “We have the energy resources, and the time to unleash those resources is now. The untapped economic opportunity for Pennsylvanians is truly incredible.”
Senate Bill 939 was referred to the Senate Communications and Technology Committee.