Bethlehem data center would fail proposed zoning rules, but project is exempt
Bethlehem City Council is considering zoning rules that would ban data centers in the city’s Planned Industrial and Light Industrial districts and impose larger setbacks, noise limits, and environmental and utility studies. A proposed data center by Boyle Construction, Paxos and Tensor IQ would not comply with the new rules, but it is exempt because its plans were filed before the ordinance was introduced.
Bethlehem City Council is considering Bill 28-2026, which would prohibit data centers in the city’s Planned Industrial and Light Industrial districts, require special exceptions in the Industrial district, and impose 1,000-foot setbacks from residential areas and other sensitive uses. The proposal also includes stricter yard and buffer requirements, noise limits, and upfront environmental, water, sewer, emergency, energy and equipment-disposal studies. The Planning Commission voted 4-0 to recommend the rules, with a first council vote scheduled for Tuesday and a final vote planned for Oct. 20.
The proposed two-story data center at 2184 Industrial Drive, announced by Boyle Construction, Paxos and Tensor IQ, would violate the proposed zoning and setback requirements. However, Bethlehem Planning Director Cathy Fletcher said projects filed before the amendment passes will be reviewed under current rules, making the project exempt from the new restrictions. The project is expected to require about 120 megawatts of peak power, use roughly 3 million gallons of cooling water, and include on-site natural-gas generation with diesel backup. Residents have raised concerns that Bethlehem lacks room for data centers, while Planning Commission Chairman Robert Melosky said the ordinance is intended to regulate rather than prohibit the industry.