Michael Helbing (Sept. 24, 2026)

As the number of data center proposals grows across the Commonwealth, many municipalities are working to prepare their communities for any existing or future data center applications that may impact their communities.  Local governments in Pennsylvania generally cannot completely ban a legal land use from setting up in their municipality, but local officials wield significant power over where and how land uses can operate.

Among the tools available to municipalities are zoning ordinances, subdivision and land development ordinances, and community benefits agreements.

Zoning

The most significant authority local governments have over land use is zoning.  Under Section 603 of the Pennsylvania Municipalities Planning Code (MPC), local governments may enact zoning ordinances to regulate land use within their municipalities.  Zoning can include regulations regarding the location in which certain land uses can occur, the size of structures, the intensity of land use, and the preservation of natural and historic resources.  53 P.S. § 10603(b).

A number of Pennsylvania municipalities have amended their zoning ordinances specifically to address impacts from data centers. These amendments regulate data centers in a manner similar to zoning of other commercial or industrial land uses. Common provisions included in data center zoning amendments include:

  • Zones– Many municipalities have chosen to restrict the location of data center development to certain parts of the municipality – most often industrial and/or commercial zones.
  • Approval requirements– Municipalities often establish data centers as “conditional uses” within the appropriate zone, meaning that the developer requires approval from the municipality’s governing body to demonstrate that the proposal satisfies local ordinance provisions.
  • Setbacks– A number of ordinances include requirements establishing a minimum distance that data center development can be from the nearest property boundary.
  • Lot size restrictions– To minimize impacts to neighboring properties, some municipalities have established a minimum lot size for data center development.
  • Building height restrictions– Some municipalities have established building height restrictions for data centers.
  • Buffers and screening– Many municipalities require data centers to surround data centers with fences and specific types of landscaping.
  • Noise– Many municipalities place decibel limits on the noise emitted from data centers.
  • Water and wastewater– Some municipalities require data centers to use specific forms of water and wastewater management, such as public water and wastewater.
  • Plan submissions– Many municipalities require data center developers to submit plans or studies regarding different aspects of development that could impact the surrounding community. Examples of those required submissions include:
    • Noise mitigation plan/sound study;
    • Energy management plan;
    • Water service analysis;
    • Thermal impact mitigation plan;
    • Emergency response plan;
    • Electric interconnection agreement;
    • Environmental impact assessment; and
    • Transportation impact study.

Subdivision and Land Development Ordinances (SALDO)

Although it does not provide as much authority over land use as zoning, local governments can use a SALDO to regulate some aspects of land use.  Municipalities that choose not to adopt a zoning ordinance will not have nearly as much control over data center development, but they may be able to use a SALDO to develop some minor land use regulations.

Given their intended purpose as land development ordinances, SALDOs are limited by statute to provisions related to subdividing and developing land.  See generally 53 P.S. § 10503. Certain provisions allowable in a SALDO, however, may be considered land use regulations.  For example, the MPC expressly allows a municipality that has not enacted a zoning ordinance to adopt in its SALDO provisions that “apply uniformly throughout the municipality regulating minimum setback lines and minimum lot sizes which are based upon the availability of water and sewage.”  53 P.S. § 10503(4.1). Setbacks are minimum required distances between land development and lot lines.

It is important to note that municipalities’ SALDO authority has been interpreted narrowly in the land use context.  For example, courts have specifically disallowed SALDO provisions that attempted to establish accessory uses (uses allowed alongside primary land uses on a lot), special exceptions, and variances (project-specific waivers from land use requirements, on the basis of established hardship) (see Robert S. Ryan, Pennsylvania Zoning Law and Practice § 11.1.3 (2001), quoting Board of Supervisors of Upper Frederick Township v. Moland Development Co., 339 A.2d 141 (Pa. Commw. 1975)); and the location of specified land uses (see Ryan at § 11.1.3, quoting Middle Paxton Township v. Sweitzer, 97 Dauph. 240 (1975), reversed on other grounds, 350 A.2d 184 (Pa. Commw. 1976)).

Community Benefits Agreements

Another tool local governments may use to guide data center development is a community benefits agreement. A community benefits agreement (CBA) is a legally-binding agreement between a developer and a local government or a group of local citizens, or both.  CBAs are also sometimes called host community agreements, good neighbor agreements, or impact benefit agreements, among other names.  CBAs are generally designed to allow a community that hosts a large industrial or commercial project to mitigate any adverse impacts from the development and to provide a mechanism by which they may share in the benefits. In some cases, community organizations or coalitions of citizens agree either to support or to not oppose a particular development as a condition of the CBA.

The negotiation of a CBA is a strictly voluntary act. As a result, a developer cannot be required to enter into a CBA (for example as a requirement of a zoning ordinance).  On the other hand, if a developer is willing to enter into a CBA, the scope of the CBA is not limited by authorities granted by the Municipalities Planning Code (or other authorizing legislation), meaning that a CBA can incorporate provisions that would not be allowed in a zoning ordinance or SALDO. Additionally, if a CBA is written to include enforceable provisions, it can become mandatory. Signatories can enforce a CBA in court after it is formalized and signed.

Among provisions that communities may consider asking for in a CBA are:

  • Local hiring requirements;
  • Training and/or equipment for emergency responders;
  • Resources for schools; and
  • Additional environmental protections, such as clean energy sourcing for data centers, closed loop cooling systems, and mitigation of impacts on habitats and wildlife.

Resources Available to Local Officials

There are a number of resources and guides available to citizens and local officials as they develop policies appropriate for their communities.  Examples of those resources are listed below: