Data Centers Done Right: A Smart, Responsible Path to Prosperity in Eastern Pennsylvania

Sen. Jarrett Coleman's smart legislation — a local moratorium for zoning updates and a repeal of blanket sales-tax subsidies — strikes the right balance. With full corporate accountability, smart zoning, and binding community benefits, eastern PA can welcome data centers that lower property taxes, fund schools, and create skilled jobs without sacrificing livability.

A hyperscale data center campus in the Lehigh Valley. Photo: lehighvalleylive.com State Sen. Jarrett Coleman (R-Bucks/Lehigh) is listening to his constituents. Following a town hall that drew thousands of voices from the Lehigh Valley and beyond, he is introducing practical legislation: a bill empowering municipalities in his district to pause new data center applications while they update zoning and add strong community protections. His second bill repeals the state sales tax exemption on data center equipment — freeing up projected revenue to help lower the gap between corporate windfalls and the services Pennsylvania families rely on. This measured approach strikes the right balance. Eastern Pennsylvania has real potential to welcome responsible data center development that powers the AI and digital economy while delivering clear wins for local families, schools, and taxpayers. The Bottom Line Done right — with full corporate accountability, smart zoning, and binding community benefits — data centers can build a stronger, more prosperous eastern Pennsylvania while putting local families first. The Opportunity Before Us Hyperscale data centers represent a once-in-a-generation chance for Pennsylvania. These facilities — massive but low-impact on daily services — bring billions in private investment, strengthen the tax base, and support the digital infrastructure we all rely on every day: online banking, telehealth, education, shopping, and work. Proponents highlight impressive local gains. One proposed project in central Pennsylvania could generate over $65 million in direct tax revenue — enough to double a township's operating budget, cover a quarter of a school district's needs, and boost the county tax base by 12%. Crucially, data centers add to property taxes without flooding schools with new students the way residential development does. They operate for decades, providing stable revenue for schools, roads, and public services. Chart 1: What a Single Well-Sited Project Can Deliver A single responsibly developed hyperscale project in central PA is projected to deliver this kind of impact: Direct annual tax revenue generated $65,000,000+ Township operating budget — could be doubled 2x School district funding need — covered 25% County tax base expansion +12% Construction phases create hundreds of good-paying jobs in the building trades, while permanent operations — though lean — support additional roles in maintenance, security, and local services. Each direct job ripples outward to several more in the broader economy. Pennsylvania's strengths — abundant energy resources, available land, skilled workforce, and central location — position the Lehigh Valley and eastern PA to compete and win in this growing sector. Modern data centers are also becoming dramatically more efficient, using advanced cooling and power technologies that reduce demands compared to older models. Honest Realism — With a Positive Focus The three primary cooling methods. Modern projects can — and should — use closed-loop or dry cooling to dramatically reduce water consumption. No one should pretend development comes without challenges. Large facilities consume significant power and water, generate industrial noise, and require careful planning around traffic and setbacks. That is exactly why Sen. Coleman's pause for smarter zoning is the right call — it gives communities time to set clear rules upfront. The key is responsibility: companies must cover their full costs for power, water, roads, and upgrades rather than shifting burdens to residents. Gov. Shapiro's GRID plan encourages on-site generation and local hiring, which aligns with this approach. When done right — with binding agreements for full infrastructure responsibility, noise limits, water-efficient technology, and community benefits — data centers become net positives. Communities Earn a Real Voice Eastern PA residents engaging on local development. Civic engagement is exactly what produces good policy. Residents in Upper Macungie, South Whitehall, the Slate Belt, and across the region deserve a voice — and they are getting one through town halls and legislation. That civic engagement is producing real results: better zoning, smarter conditions, and stronger community-benefit agreements before shovels go in the ground. A Practical Framework That Puts Local Taxpayers First Pennsylvania can capture the upside while protecting quality of life. Here is a positive, practical framework: Pillar 1 Smart, Temporary Moratoriums Where Needed Allow towns like those in the Lehigh Valley to pause and update ordinances for setbacks (e.g., 1-mile from homes and schools), enforceable noise standards, and landscaping buffers. This ensures projects fit the community. Pillar 2 End Blanket Subsidies — Reward Responsibility Repeal broad tax exemptions, but offer targeted incentives only for projects that meet high standards: 100% on-site or dedicated power generation (renewables + storage preferred), full payment for grid and water upgrades, and transparent monthly reporting on usage. Pillar 3 Full Corporate Accountability Developers pay 100% of infrastructure costs — no free rides on residential electric bills or public water systems. Mandate advanced closed-loop or dry cooling to minimize water evaporation, with independent audits. Pillar 4 Binding Community Benefits Require agreements that deliver real value: local hiring and training quotas, direct contributions to schools, revenue sharing that expands the tax base, and support for broader services. With these in place, property tax revenue can help lower rates for homeowners or fund school programs without added strain. The Win-Win Outcome A modern hyperscale campus. Properly sited, well-buffered, and water-efficient — the kind of project Pennsylvania can welcome. Once guardrails ensure companies are fully responsible — not the community — the benefits shine through. Expanded tax bases from these capital-intensive projects can generate meaningful revenue that supports lower property taxes for residents, bolsters school funding (without the student load of housing developments), and funds community priorities. Construction and indirect jobs provide economic lifts, while the facilities themselves power the 21st-century economy that keeps Pennsylvania competitive. Lower Property Tax Bills for Homeowners Without abatements, a single hyperscale facility can generate millions in annual property tax — money that can directly reduce residential property tax bills. Stronger Schools Without Student-Load Strain Data centers don't bring families with school-age children, so the revenue boost lands in school district budgets without proportional new costs. Skilled, Family-Sustaining Jobs Real work in construction, maintenance, security, electrical, mechanical services, and supply chains — provided local hiring is contractually required. Preserved Farmland Character Smart siting, generous setbacks, and landscape buffers protect rural character while still capturing the economic upside. A Path Forward — Together Get Involved Show up to township and county meetings — civic engagement produces better policy. Support Sen. Coleman's bills as a smart starting point for responsible development. Push your township to update zoning with strong setbacks, noise limits, and buffers. Demand binding community benefit agreements on every project — local hiring, school funding, and revenue sharing. Pennsylvania has the assets Big Tech needs. With responsible rules in place, data centers can help build a stronger, more prosperous eastern PA — powering innovation while putting local families first. The future does not have to be a trade-off. Done correctly, it is a genuine opportunity for growth that benefits everyone. Sources: Office of State Sen. Jarrett Coleman (R-Bucks/Lehigh), Gov. Shapiro's GRID plan, lehighvalleylive.com regional reporting, central-PA project tax revenue projections, Submer datacenter water consumption research.