Data Centers
Large-scale data centers are a new and potentially impactful use that has surfaced in our region recently and has gained nationwide attention as artificial intelligence grows in its capabilities and use. Some municipal ordinances may not adequately address the unique characteristics of this type of development. Municipalities should identify areas in their community that might have suitable infrastructure for data center development and proactively adopt clear ordinance language to adequately regulate this use.
Overview
Data center locational needs
- Within 1-2 miles of high-voltage electric transmission lines
- Near major fiber optic lines
- Within or near a public water service area
- Typically require a tract of 75 acres or more
Power usage
Data centers recently proposed in the region would be expected to consume a combined total of 100 megawatts of power or more — roughly equivalent to a small city's energy use. Power may come from the electric grid or on-site generation, typically natural gas turbines. Backup power is required for outages and is most often provided by diesel generators, though battery systems may also be used.
Water usage
Data center equipment must be cooled using either air or water. Air cooling can be noisy due to large fans, while water cooling can consume significant volumes of water — potentially millions of gallons per day during summer months. Public water connections are often required and could necessitate upgrades to treatment infrastructure. In these cases, public water providers would need to obtain approval from the Delaware or Susquehanna River Basin Commission for new water withdrawals over 100,000 gallons/day.
Noise
Cooling systems and backup generators can produce continuous noise, including low-frequency vibrations, which may be more noticeable at night when background noise is reduced. Municipal noise ordinances may not fully address data center noise as written.
Air quality
Facilities with on-site power generation may raise air quality concerns. Backup fossil-fuel generators are tested regularly, though total operation typically amounts to only a few hours per year. Data centers may be required to obtain air quality permits from PA DEP due to backup generator use.
Economic impact
Data centers generate fewer jobs per square foot than many other industrial uses, though these positions are often higher-paying. Construction is typically phased, resulting in longer-term construction employment. Data centers also contribute tax revenue to local municipalities primarily through property taxes. State taxes include corporate income tax, although PA exempts many types of data center equipment from sales and use tax for qualifying data centers, similar to nearly 3 dozen other states. Additionally, data center employees would pay earned income taxes to local municipalities and the state.
Further Reading
The following resources will provide municipalities with an understanding of how data centers work, their unique needs, and their potential impacts and benefits. Several model ordinances have been developed that municipalities can use as reference when developing their own codes.
Chester County and Montgomery County are currently developing model guidance for municipalities on data center development, which is expected to be completed in mid-March 2026. The Planning Commission will continue to expand information and resources on this webpage as it becomes available.
Guidance Documents
- Lancaster County Planning Commission's Planning Guide Pertaining to Data Centers in Lancaster County, PA
- Cumberland County Data Center Fact Sheet
- Urban Land Institute's Local Guidelines for Data Cener Development
- Georgetown Climate Center's Local Ordinances to Help Bring Data Centers into Alignment with Climate Goals