Bethlehem, Pa., now has zoning rules for data centers. On Tuesday, Oct. 20, 2026, City Council gave final approval 6-1 to the city's first data center standards. The ordinance allows the facilities only by special exception in the Industrial (IN) district, requires a 1,000-foot buffer from homes and other sensitive sites, and requires applicants to file a set of impact studies up front.
The vote does not settle what happens with the two projects that started the debate. According to Lehigh Daily, city officials told council that both proposals were submitted before the ordinance passed and will be reviewed under the zoning code that was in place when they were filed.
The vote
Lehigh Daily reported that council members Laird, Amann, Callahan, Colon and Kwiatek and Council President Rachel Leon voted yes. Leon and Amann sponsored the ordinance. Councilwoman Jo Daniels voted no. Lehigh Daily reported that Daniels had voted for the rules when they passed Oct. 6 by a 7-0 vote.
What the ordinance does
The rules come from a zoning text amendment drafted by the city's planning and zoning staff. In a July 15, 2026 memo to Council President Leon, Director of Planning and Zoning Cathy Fletcher described an amendment to Part 13 of the city's Zoning Ordinance. The amendment defines "data center" as a land use for the first time and sets these conditions:
- Where data centers can go. Only the Industrial (IN) district, and only by special exception. The Zoning Hearing Board reviews each application individually. Lehigh Daily reported that the final ordinance bans data centers in the Planned Industrial (PI) district.
- Residential and sensitive-receptor setback. At least 1,000 feet from lots zoned residential and from sensitive receptors. Sensitive receptors include homes, schools, day cares, parks, hospitals and recreation centers.
- Edge setback. At least 200 feet from a public right-of-way or from any lot outside the IN district.
- Studies at application. Applicants must submit all plans and studies when they apply. Those studies cover environmental, water, energy, noise and heat impacts.
- Grid certification. A data center that connects to the grid needs documentation from the electric utility certifying that it has the capacity and will serve the site. Known impacts on electric rates or availability for other uses must be noted.
- Site design. The memo also sets limits on height, yards, buffers and lot coverage.
The Bethlehem Planning Commission reviewed the amendment before council did. WFMZ reported that the commission advanced the text amendments after a presentation by Fletcher. That version had the same definition, the special-exception path in the IN district, the 200-foot and 1,000-foot setbacks, and the sensitive-receptor category.
Two projects filed under the old rules
According to Lehigh Daily, Mayor J. William Reynolds said the cutoff was 4:30 p.m. Tuesday. Laura Collins, the city's director of community and economic development, told council that the city reviews any land development submission filed before the ordinance passed under the zoning in place at the time.
2184 Industrial Drive. Lehigh Daily reported that Boyle Construction, Paxos and Tensor IQ announced this two-story project in August, with a projected peak demand of about 120 megawatts. The site is in the Planned Industrial district, where the new ordinance bans data centers. Lehigh Daily also reported that every part of the site is within 1,000 feet of residentially zoned land, which is inside the new minimum setback. Lehigh Daily reported that the project could not be built under the new rules.
A second, undisclosed proposal. Collins told council that "another proposal" in the city's industrial zone had come in and had just begun internal review. Lehigh Daily reported that the city has not made public the project's location, developer, size or power demand.
Collins said the city is seeking voluntary compliance from both developers with the studies the new rules require. The ordinance itself does not require that of projects filed before the cutoff, and Lehigh Daily's report does not say whether either developer has agreed.
Why the cutoff matters
Because of the cutoff, the 1,000-foot buffer, the IN-only restriction and the required studies apply to proposals filed after the ordinance passed. As Collins described it to council, they do not apply to the two projects already filed, including the Industrial Drive project, which was announced in August, before the ordinance was passed.
Mayor Reynolds told council before the vote that he had worried developers might rush proposals in under the old code before the new rules passed. Lehigh Daily reported that he said a second proposal was not good news in itself, but that two, one smaller than the other, was better than what is happening in other communities.
The memo's main terms are a single permitted district, Zoning Hearing Board review, fixed setbacks from homes and community facilities, studies filed with the application, and a utility's certification that it can serve the load. WFMZ's account of the Planning Commission version describes the same core terms, apart from the utility certification, which it does not mention.
What Happens Next
According to Lehigh Daily, Collins said the second proposal still goes to the Lehigh Valley Planning Commission and the Bethlehem Planning Commission. Lehigh Daily also reported that it asked the city for the second project's location, developer, size and power demand, which the city has not made public, and filed a Right-to-Know request for both projects' applications. Per the memo, a data center application filed under the new ordinance is a special exception, which the Zoning Hearing Board reviews case by case.
