Bethlehem Officials to Hold Public Hearing on Proposed Data Center Ordinance
Boyle Construction is proposing a new 120 MW data center in Bethlehem, Pennsylvania, leading local officials to consider a new ordinance to regulate data centers. This development occurs as Governor Josh Shapiro has signed an executive order establishing stricter statewide requirements for data center projects, addressing energy, environmental, and water impacts. The proposed Bethlehem facility, along with others in the Lehigh Valley, highlights increasing electricity demands in the region.
Bethlehem, Pennsylvania, is poised to become the latest focal point in the Lehigh Valley's ongoing debate surrounding data center developments. Boyle Construction, in partnership with Paxos and Tensor IQ, plans to construct a 60-foot-tall, two-story data center at 2184 Industrial Drive, which would involve demolishing the former Crowder Service Center. The project, projected to require 120 megawatts of electricity with 80% supplied by a new privately funded electrical substation, has prompted local officials to consider a new ordinance to regulate data centers within city limits.
A public hearing for the proposed ordinance is scheduled before the Bethlehem City Council's October 6 meeting. However, the ordinance, if passed, will not apply to Boyle Construction's project, as its plans were submitted before the legislation's introduction. The data center is designed to use a closed-loop cooling system. The Lehigh Valley Planning Commission's review indicates over $70 million in necessary electrical and utility infrastructure upgrades, which are slated for private funding.
The Bethlehem project also falls under the purview of new statewide guidelines established by Pennsylvania Governor Josh Shapiro. Last month, Governor Shapiro signed an executive order imposing "Responsible Infrastructure Development" (GRID) requirements, aiming to prevent "speculative, irresponsible data center projects." These standards address energy affordability, environmental, and water impacts, and mandate that the Pennsylvania Department of Environmental Protection (DEP) will not issue permits for GRID-compliant data centers until local approvals are secured.
The Bethlehem proposal, along with other large-scale data center projects in South Allentown and South Whitehall Township by developers like Edged US, contributes to a collective potential electricity demand exceeding one gigawatt across the Lehigh Valley. This demand would add significantly to PPL Electric Utilities' current peak demand of about 7.8 gigawatts per day. The new state requirements mean that even non-compliant proposals will not be reviewed by DEP until local approvals are obtained, giving municipalities greater control over such developments.