Centre County Updates Zoning Ordinance to Facilitate Data Center Development

Executive Summary

Centre County, Pennsylvania, has revised its zoning ordinance to include provisions for data center development, using a shared-use zoning framework to streamline the path from site selection to project approval. The change signals that local governments in secondary Pennsylvania markets are actively competing for the capital and jobs that large-scale data center investment brings. Developers and landowners in the county stand to benefit from a cleaner regulatory runway, while surrounding communities will need to monitor how increased power demand and land use changes affect local infrastructure. For InfraSale users, this is a concrete signal that site sourcing in Centre County, PA, deserves a closer look right now, before competition for suitable parcels intensifies.

What Happened

Centre County revised its zoning ordinance to explicitly accommodate data center development, a use type that many rural and suburban municipalities have historically struggled to categorize under legacy land-use codes. The key mechanism is a shared-use zoning agreement, which gives the county flexibility to permit data centers in zones that might otherwise exclude or restrict large industrial-style facilities.

The decision appears to have been deliberate and considered. Local officials indicated that placing data centers under the shared-use zoning framework was evaluated as the most practical path to enabling development while retaining local oversight. The modification is designed to reduce friction in the permitting process for future projects that meet the county's criteria.

The updates are intended to position Centre County as a viable destination for data center investment, a market segment that has historically concentrated in Northern Virginia, Phoenix, Chicago, and Dallas. Bringing this type of infrastructure to a secondary market like Centre County reflects broader industry pressure to diversify away from congested Tier 1 markets.

Source: Google Alert - Data Centers / WTAJ

Why This Matters

Zoning is often the first and most significant bottleneck in data center development. A municipality that proactively updates its ordinance to accommodate this asset class removes months — sometimes years — of entitlement risk from a project timeline. That matters enormously to developers and capital allocators who are already wrestling with interconnection queue delays and equipment lead times.

Centre County's move is part of a broader pattern. As Tier 1 data center markets face power moratoriums, land scarcity, and community pushback, developers are increasingly looking at secondary and tertiary markets where land is available, communities are receptive, and local governments are willing to adapt their regulatory frameworks. Centre County is now explicitly in that category.

Industry context: Pennsylvania's broader energy infrastructure, including its position within PJM Interconnection — one of the largest grid operators in North America — makes the state a logical expansion target for operators looking for grid access with development headroom. Centre County's zoning update may be the regulatory unlock that tips a site from "under consideration" to "under LOI."

Power & Interconnection Impact

Data centers are among the most power-intensive facilities a local grid must absorb. A single hyperscale campus can draw 100 MW to 500 MW or more, and even a modest colocation facility will require reliable, redundant utility-grade power with clear interconnection pathways.

Industry context: Centre County is served by utilities operating within the PJM footprint, which means interconnection requests would flow through PJM's queue process — a process that has seen significant backlogs in recent years due to the volume of renewable and load-growth applications. Developers considering sites in the county should conduct early-stage interconnection feasibility studies to understand substation capacity and potential upgrade costs before committing to land.

The zoning update alone does not resolve power availability. However, it does signal municipal willingness to engage — which can accelerate conversations with local utilities about infrastructure upgrades. Stakeholders should treat this as a green light to begin those utility conversations, not as confirmation that power is ready to deliver.

Land, Zoning & Permitting Impact

The shared-use zoning mechanism is particularly significant for landowners. Parcels that may have previously fallen into ambiguous zoning categories — agricultural land adjacent to industrial corridors, for example — could now qualify for data center development under the updated framework. That changes the value calculus for landowners and the site-selection calculus for developers simultaneously.

Streamlined permitting does not mean frictionless permitting. Developers will still need to navigate environmental review, stormwater management, setback requirements, and utility coordination. What the ordinance update changes is the baseline: data centers are now an acknowledged and accommodated use, rather than a use that must be argued into existence through variances or special exceptions.

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Local communities will have legitimate questions about water consumption for cooling systems, noise from backup generators and HVAC, traffic from construction and ongoing operations, and visual impact. Developers who engage early and transparently with municipal planning boards will have a structural advantage over those who treat community engagement as a box-checking exercise.

Investment Takeaway

Zoning clarity is a value-creation event. Parcels in Centre County that are appropriately sized and served — or serviceable — by adequate utility infrastructure have just become meaningfully more attractive as data center sites.
First-mover advantage is real but narrow. Ordinance updates attract developer attention quickly. The window to identify and control well-located parcels before competition drives up land pricing is typically 12–24 months.
Power diligence cannot wait. The most common reason promising sites fail is inadequate power at a price that supports project economics. Early interconnection feasibility — before signing purchase agreements — is non-negotiable.
Secondary market risk is real. Centre County is not Northern Virginia. Absorption timelines may be longer, anchor tenant depth may be shallower, and exit liquidity for stabilized assets may be thinner. Underwrite accordingly.
Monitor adjacent municipalities. Zoning updates in one township often trigger copycat ordinances in neighboring jurisdictions. Investors tracking Centre County should watch surrounding townships for similar regulatory movement.

InfraSale Market Angle

For developers actively sourcing sites in Pennsylvania, Centre County has just moved up the priority list. The shared-use zoning framework reduces entitlement risk — one of the most time-consuming and capital-consuming phases of data center development — and signals a local government that is open for business. That combination is rare enough outside of established Tier 1 markets to warrant immediate attention.

Landowners in Centre County with parcels of 20 acres or more, particularly those near existing transmission infrastructure or with access to three-phase power, should be evaluating their options now. The demand is real, the regulatory environment has improved, and the window before competitive pressure narrows is open but not permanent.

Investors deploying capital into data center development or powered land plays should add Centre County to their active scouting list. Understanding the specifics of the shared-use zoning agreement — what uses are permitted, what conditions apply, what the approval process looks like — is the first step to assessing whether a specific parcel qualifies and at what cost.

Market Signal

Location: Centre County, PA
Primary Issue: Zoning changes facilitating data centers
Infrastructure Theme: Zoning
Who Benefits: Data center developers and investors
Who's at Risk: Local communities concerned about land use impacts
InfraSale Takeaway: Investors should evaluate opportunities arising from the new zoning regulations in Centre County.

Take Action

Centre County's ordinance update creates a narrow window to move on well-positioned parcels before developer competition intensifies and land pricing adjusts. Whether you are a landowner looking to understand your site's new value or a developer sourcing your next project, acting on current market signals is what separates opportunistic capital from reactive capital. Connect with developers actively sourcing sites like this.

FAQ

How do zoning changes affect data center development?

Zoning ordinances determine what uses are legally permitted on a given parcel. When a municipality updates its code to explicitly accommodate data centers, developers avoid the time and cost of pursuing variances or special-use permits — a process that can add six to eighteen months to a project timeline. A clear zoning framework also reduces legal exposure and makes it easier to secure project financing.

What should investors look for in new zoning regulations?

The key factors are permitted use language, conditional use requirements, setback and lot coverage standards, and any community benefit or infrastructure contribution requirements attached to approval. Investors should also examine whether the ordinance addresses power infrastructure expectations, environmental review triggers, and how the municipality defines "shared use" in practical terms. A zoning update that sounds permissive may still carry significant conditions that affect project economics.

How can developers navigate the new zoning landscape in Centre County?

Early engagement with the county planning department is the most direct path to understanding how the shared-use agreement works in practice. Developers should request pre-application meetings before committing capital to site control, use those sessions to map out the full approval timeline, and identify any community engagement requirements upfront. Proactive transparency with local officials tends to reduce opposition and accelerate approvals.

Why are secondary markets like Centre County becoming more attractive for data centers?

Tier 1 markets — Northern Virginia, Phoenix, Chicago, the New Jersey corridor — are increasingly constrained by power moratoriums, saturated interconnection queues, and land scarcity. Secondary markets offer available land, more accessible utility relationships, and local governments that are often more motivated to facilitate development. The trade-off is thinner tenant demand and longer absorption timelines, which investors need to underwrite carefully.