Officials deny controversial 1.9 million square foot data center proposed for Pennhurst site, likely setting up a court battle

East Vincent Township officials unanimously denied a conditional use permit for a 1.9 million-square-foot data center proposed by Pennhurst Holdings LLC at the historic Pennhurst State School and Hospital site. The decision on Thursday was a victory for local residents who had actively campaigned against the project, citing concerns about environmental impact, health, and the strain on the power grid.

Matt McHugh, an attorney for Pennhurst Holdings LLC, stated that the developer anticipated such an outcome and intends to appeal the decision to Chester County’s Court of Common Pleas. McHugh argued that the township has a legal obligation to provide zoning for data centers, which it has not done through a specific ordinance. He indicated that other legal challenges regarding the township's zoning obligations are already pending.

State Sen. Katie Muth, an East Vincent resident and proponent of a statewide data center moratorium, praised the board's decision as "a big win" but acknowledged the battle is likely not over. The project, designed to include three two-story buildings along with power generation and battery storage, faced strong recommendations for rejection from the township's planning and environmental commissions, and opposition from neighboring Spring City officials.

Municipal leaders across Pennsylvania are reportedly drafting ordinances to regulate data centers, while state-level legislation, including Senator Muth's proposed moratorium, also seeks to address the issue.