Lancaster City Council to Vote on Data Center Zoning Ordinance, Approves Sewer Loan

Lancaster City Council to Vote on Data Center Zoning Ordinance, Approves Sewer Loan

News ClipLancasterOnline·Lancaster County, PA·6/11/2026

Lancaster City Council approved a state loan for wastewater treatment plant improvements and scheduled a special meeting to discuss and potentially vote on a data center zoning ordinance. The proposed ordinance will have its second reading during the June 24th meeting. The city is partnering with several suburban entities for the sewer upgrade project.

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Gov: Lancaster City Council, Pennsylvania Infrastructure Investment Authority, Lancaster Area Sewer Authority, Suburban Lancaster Sewer Authority, East Lampeter Sewer Authority, Upper Leacock Township Municipal Authority, Strasburg Borough Authority, Manor Township, Manheim Township, Lancaster Township, Pennsylvania Department of Transportation

The Lancaster City Council met on June 9, where they approved the use of a Pennsylvania Infrastructure Investment Authority loan, potentially up to $3.88 million, for significant wastewater treatment improvements. The state authority had initially awarded an $8.88 million loan for the project, with the remaining $5 million to be proportionately split among Lancaster's suburban wastewater treatment partners, including Lancaster Area, Suburban Lancaster, East Lampeter, Upper Leacock Township, Strasburg Borough, and Manor Township sewer authorities.

The improvements will target the advanced wastewater treatment plant's South Trail Screen House with new automatic screens and conveyors, and the chlorination building with emergency chlorine gas scrubbers and related electrical upgrades. Thanks to lower-than-projected bids, the actual borrowed amount could be reduced to $3 million. The city will benefit from an interest-only period for up to three years, followed by a 20-year repayment plan with varying interest rates.

In a separate key development, Council President Ahmed Ahmed announced a special meeting for June 24 at 6 p.m. in the Polite council chambers. This meeting is specifically scheduled for a zoning update concerning data center uses and will include the second reading of a data center zoning ordinance, which could lead to a council vote.