Data center ordinance approved in Nesquehoning
Nesquehoning has adopted an ordinance outlining requirements for any data center proposed in the borough.
On Wednesday, borough council approved the ordinance, which had previously been reviewed by the zoning board and planning commission. Council members Lisa Shubeck and William Bamford were absent.
Prior to the vote, council held a public hearing for residents to voice their opinions on the contents of the ordinance. About 30 people, as well as four Keel Infrastructure representatives, attended the hearing.
Residents raised concerns about noise, vibrations, wetland setbacks, electric and water usage, and lighting, saying the ordinance should include more detailed standards.
Linda Christman, representing Save Carbon County, suggested requiring a vibration study, citing concerns about low-frequency vibrations affecting nearby residents.
Company replies
Liam Wilson, chief operating officer for Keel, the company currently proposing a data center complex off Industrial Road in the Hauto Valley Estates, said that the company would be more than willing to conduct such a study.
“With regards to our site, there will certainly be no more vibrations than there currently is with an operating coal power plant and the train line.”
Craig Hibbard, senior vice president of infrastructure at Keel, said the company already maintains strict vibration standards due to equipment sensitivity and agreed a study could be done.
Hauto resident Marcia Evans questioned borough engineer Greg Haas’ qualifications to draft a data center ordinance.
He said he currently serves eight municipalities in this capacity, and has done extensive research on data center ordinances and regulations to allow for him to serve these communities.
Additional ordinances
One resident stated that the borough’s ordinance as it stood was too vague; however Haas pointed out the borough has several ordinances already in place that cover additional items so they were not included within the data center ordinance.
He noted the borough has existing ordinances covering related issues and said any project must comply with all local regulations, including those governing water discharge.
“We do have in our subdivision and land development ordinance a pretty stringent section on stormwater management requirements,” Haas said.
Bob Strauss of New Columbus questioned how violations would be enforced, saying clearer language was needed.
Keel representatives said they would address any violations before they became an issue.
Council added that state and federal agencies also regulate data center operations.
Discussion then shifted to the proposed project, with residents raising concerns about the required closed-loop cooling system, potential health effects and overall community impact.
Resident feedback
Some residents spoke against the proposed project.
Grace Butrym said that she is against it, while Greg Lengyel said that the constant noise could cause what he read as chronic sleep distress.
Tom Devitt, who lives in the Hauto Valley Estates, questioned why the borough is accepting data centers when “this is being opposed everywhere in the state.”
“People’s taxes go up three times. The sewer is triple, the water is triple and we’re embracing this,” he said.
Council President Bruce Nalesnik said the closed-loop system would prevent increases in water and sewer rates. Keel representatives have said the facility would use about 3,000 gallons of water daily, roughly the equivalent of 10 homes.
“They would be purchasing EDUs from the borough,” Nalesnik added. “So if someone were to come in and want to build 100 homes, we would welcome it.”
Devitt asked what the borough is going to do when there isn’t enough power to power the 350-megawatt facility.
Nalesnik told him that the complaint should be with the power grid operators because “they failed to add any new plants for many years. PJM, hey knew this 30 years ago so I think you need to voice your opposition to them and not the borough of Nesquehoning.”
“I’m just amazed it’s (data centers) being banned everywhere else,” Devitt said.
“I think there’s numerous data centers under construction now in Pennsylvania,” Nalesnik responded.
Long-term benefits
Abbie Guardiani, who serves as a member of the Panther Valley Blueprint Community and as a Nesquehoning advocate for the town, said the project could bring long-term economic benefits.
“States all across the country are competing to attract infrastructure that makes the modern economy possible,” she said. “At the center of this competition, whether you like it or not, are data centers. They are the physical backbone of the digital world.”
She noted that these centers are found in pretty much every aspect of a person’s life, whether it be by watching a streaming service on television or surfing on a smartphone, data center operations are needed. Hospital systems, banking institutions, energy grids and emergency response networks also depend on connectivity that moves through a data center.
“Data center development represents a once-in-a-generation opportunity to attract historic private investment, create new and diverse careers that would help reverse decades of stagnation and decline, strengthen local tax bases with resources to fund our schools, infrastructure and public safety, and empower communities to build long-term sustainable prosperity,” she said.
“A single data center campus can involved hundreds of millions or even billions of dollars in upfront land investment, construction, equipment and electrical infrastructure. These investments are not short-term. Data centers are designed to operate for decades, meaning communities benefit from long-term property tax revenues.
“They do not require communities to change who they are; but they provide tools to shape what comes next with the right policies in place.”
Residents then asked what this means for the borough.
“What’s the tax revenue the town is going to receive? That’s the most important thing for the town,” Lengyel asked.
Nalesnik said that figure has not been determined; however, Wilson said that the estimate on what Keel will be paying in combined property taxes for the site is “somewhere around $14 million a year.”
He added that the company will not be applying for any abatements to lower this tax either.
“We’re not skirting away from that,” Wilson said. “We’re going to pay our way.”