Doing Data Center Regulation the Right Way

By Lucas Martsolf - Keystone Municipal Solutions

“Data Center” used to be a technical term most communities never discussed. Today, it’s one of the most controversial land uses on local agendas.

At Keystone Municipal Solutions (KMS), we’re seeing the same pattern across Pennsylvania: Residents worry about noise, height, water usage, and power demand, while municipalities struggle with outdated zoning that isn’t built for the digital economy.

Here’s the good news: It doesn’t have to be a fight.

Data centers offer real municipal upside:

• High tax revenue with very little traffic impact

• Skilled, well-paying jobs (many not requiring a four-year degree)

• No strain on schools or emergency services

• Long-term economic stability

• Critical infrastructure for AI, research, medical systems, and advanced industries

And yes — the concerns are legitimate: Power load. Water usage. Facility height. Noise. Land footprint.

But these challenges are manageable when municipalities plan ahead rather than react late.

Here’s what we recommend to local governments:

1. Define “Data Center” in your zoning ordinance (don’t force everything into conditional use).

2. Designate appropriate districts where they’re permitted by right.

3. Use clear performance standards for noise, screening, height, water, and infrastructure capacity.

4. Coordinate early with utilities to understand feasibility.

5. Talk with residents and developers early in the process to build understanding and reduce conflict.

When local leaders combine clarity, planning, and transparent communication, data centers can become high-value, low-impact assets — not community flashpoints.

Data center regulation can be done right, and Pennsylvania communities can benefit when they get ahead of the issue.

If your municipality is considering how to prepare for this emerging industry, Keystone Municipal Solutions is already helping communities navigate it with confidence. Check us out at keystonemunicipalsolutions.com or reach out to me directly at lmartsolf@keystonemunicipalsolutions.com.

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About the Author

Lucas Martsolf leads the Keystone Municipal Solutions team in western Pennsylvania.

He is a seasoned veteran of local government, with nearly 15 years of experience in administrative leadership roles. Lucas joined Keystone Municipal Solutions after spending four years as assistant manager for Cranberry Township in Butler County, where he currently resides. He previously served for a decade as township manager for Antis Township in Blair County.