Why can’t Lehigh Valley towns just say no to data centers?
Towns in Pennsylvania's Lehigh Valley face legal hurdles in blocking data center projects due to existing state zoning laws. While Allentown has adopted new ordinances to regulate data centers, state lawmakers are proposing legislation to grant municipalities more power, including the ability to enact moratoriums on data center development applications. Community opposition remains strong, particularly against projects like Project Atlas in South Whitehall Township.
Lehigh Valley towns in Pennsylvania are grappling with limited legal authority to prevent data center developments, primarily due to the state's 1968 Municipalities Planning Code. This code requires local governments to designate space for all lawful uses, including data centers, meaning outright bans constitute illegal exclusionary zoning that could lead to costly lawsuits. An example from 1977 involving Upper Providence Township and the Pennsylvania Supreme Court highlighted how zoning ordinances can be invalidated, stripping municipalities of their power to block development.
Despite these constraints, some local governments are taking action. Allentown recently adopted new ordinances to restrict where data centers can be built and mandate public hearings for new projects, though these changes will not apply to applications submitted before the ordinance's passage. In South Whitehall Township, residents are actively opposing "Project Atlas," a proposed data center in a "Planned Innovation, Research and Technology" (PIRT) overlay district, which allows data centers "by right" and complicates the denial process. Spurgeon J. Dunbar of the South Whitehall Alliance noted that this zoning places the burden of proof on the municipality to deny, and the Planning Commission is set to review Project Atlas on July 9.
In response to mounting community pressure, state lawmakers are pursuing legislative solutions. State Senator Jarrett Coleman (R-Lehigh) introduced a package of bills, including measures to repeal a 2021 data center tax break and empower municipalities to impose moratoriums on development applications, with one bill recently advancing from the Senate Local Government Committee. Concurrently, State Representative Paul Friel (D-Chester) sponsored a bill that passed the state House on June 24, which would allow local governments a six-month pause to review applications and update land-use ordinances. These legislative efforts aim to provide municipalities with the necessary tools to address data center impacts like water and energy usage.