Data Center Event Recap

Posted March 18, 2026

Like the electric grid and roadway networks that form the more traditional part of our critical infrastructure, data centers are becoming a component of modern-day infrastructure that drives our increasingly digitally-oriented lives. At the same time, local municipalities are beginning to understand the potential community impacts of this use and recognize a need to provide specific regulations.

To help municipal leaders better understand these issues and prepare for potential development, the Chester County Planning Commission partnered with the Chester County Association of Township Officials, Montgomery County, and the Delaware Valley Regional Planning Commission to host an event on understanding data centers in Southeast Pennsylvania on March 10, 2026.

The event featured four sessions.

The first session provided an overview of data centers, presented by Sara Friedman of the Better Data Center Project, followed by a state legislation update from Stephen Petro of the Pennsylvania House Energy Committee.

During the second session, electricity rates and impacts on the grid and power generation were discussed by Tom Bonner of PECO, Patrick Cicero of the Pennsylvania Utility Law Project, and Jessica O'Neill of PennFuture. The presenters shared that a 500-megawatt data center requires roughly the same amount of electricity as 415,000 homes or 45 industrial operations. While data centers are expected to have a neutral to positive impact on electricity distribution rates, increased demand is driving generation costs up nationwide on average by nine to ten times.

The third session focused on the environmental and community impacts of data centers. Presenters included Beth Koniers Brown of the Delaware River Basin Commission, Brigitte Meyer of PennFuture, Khalil Shahyd of the Natural Resources Defense Council, Tony Nokovich of PA American Water, and John Myers-Bangsund of the Better Data Center Project.

In terms of environmental impacts, presenters explained that most data centers prefer connecting to public water systems because they are more reliable than groundwater or direct surface water withdrawals. Facilities using more than 100,000 gallons of water per day must obtain permits through the Delaware River Basin Commission, and facilities using more than five million gallons per day must develop a drought management plan. Water demand also varies significantly depending on the season and weather conditions, which may encourage on-site water storage to meet peak cooling needs.

Presenters also noted that Pennsylvania's natural gas production is a major draw for data centers. Some facilities are considering connecting to or extending pipelines to develop their own natural gas turbines as a short- or long-term power source. There is also concern that diesel generator use could increase as climate change and grid stress create power reliability issues; diesel generators can be 10 to 200 times more polluting than grid power.

From an economic standpoint, approximately 80% of the jobs associated with data centers occur during the construction phase. The economic impact to school districts can be significant, though municipalities should not expect a significant windfall from tax revenue once a data center is operational. In addition, large facilities could strain the capacity of volunteer emergency services.

The final session covered municipal perspectives and featured Doug Borgerson of West Conshohocken Borough (Montgomery County) and John Shepherd of Falls Township (Bucks County). They recommended that regulating data centers through a conditional use process is the most effective approach within a municipal zoning ordinance.

Additional recommendations for municipal leaders included preparing for the possibility of 24-hour construction operations; restricting the use of non-disclosure agreements (NDAs); and reviewing other ordinances related to energy generation facilities and noise.

Scott France, Executive Director of the Montgomery County Planning Commission, provided closing remarks and noted that the Chester and Montgomery County Planning Commissions are collaborating on an ordinance guide for data centers which is expected to be complete by the end of March.

As interest in these facilities continues to grow across the country, understanding their potential impacts will be critical for local governments to appropriately regulate them. Events like this help equip municipalities with the knowledge needed to thoughtfully evaluate proposals and ensure that future development aligns with community goals and infrastructure capacity.

To learn more, visit our webpage to help municipal ordinances adequately address this type of development.