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Township rejects massive data center as developer prepares court fight

"This is only the beginning."

An aerial view of a large commercial building under construction, surrounded by machinery and vehicles.

Photo Credit: iStock

A Pennsylvania township has rejected plans for a massive data center at a historic site, a win for residents who have spent months pushing back on the proposal.

But the fight may be far from over. The developer has said it plans to appeal, setting up a new legal clash over how communities should handle the energy-hungry infrastructure used to power artificial intelligence.

According to the Philadelphia Inquirer, East Vincent Township supervisors unanimously voted last week against a 1.9-million-square-foot data center proposed for construction on the Pennhurst State School and Hospital property. 

The decision came during the project's second conditional use hearing. During the hearing, supervisors considered zoning standards and whether the application satisfied them. Officials ultimately determined that the application did not fully comply.

Residents had packed public meetings and urged the township to reject the plan. People in attendance erupted in loud applause after the decision, The Inquirer reported.

Still, Pennhurst Holdings LLC appeared ready for the outcome. According to the paper, company attorney Matt McHugh said an appeal is coming, and it would send the dispute to Chester County's Court of Common Pleas.

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The proposed project would have included three two-story buildings and a power-generation and battery-storage field near the Schuylkill River and area homes. Opponents have raised concerns about environmental impacts, public health, and added strain on the power grid.

The fight comes amid a broader debate across Pennsylvania and beyond over how communities should handle the development of data centers, which power computing services such as AI. 

The technology can offer benefits, including improving grid management, forecasting electricity demand, and helping clean energy systems operate more efficiently. At the same time, AI can require enormous amounts of electricity and water, potentially increasing pressure on local utilities, raising household costs, and creating concerns about security, misuse, and unintended consequences.

Community opposition had already been building in East Vincent before last week's vote. The township's planning and environmental commissions recommended rejection last month, and elected officials in neighboring Spring City also asked supervisors to deny the project, according to The Inquirer.

At the state level, lawmakers are beginning to respond to the wave of data center proposals. State Sen. Katie Muth, an East Vincent resident, is proposing a moratorium on data centers as policymakers consider how to regulate the infrastructure.

Attorney McHugh, meanwhile, said the company's appeal will contest the township's interpretation of its zoning rules, while other legal challenges may also move ahead.

"This is only the beginning," said John Binelli, a local who created a Facebook page to raise awareness of the East Vincent project, according to the newspaper.

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