Olyphant Borough Moves to Regulate Data Center Development with Proposed Zoning Ordinance
January 2, 2026
As data center development interest surges in Pennsylvania's Lackawanna County, the borough of Olyphant is taking proactive steps to establish regulatory control. With proposals already active in neighboring municipalities like Archbald, Dickson City, and Jessup, Olyphant aims to avoid legal pitfalls and manage the potential impact of these large-scale, utility-intensive facilities on its community and infrastructure.
The Olyphant Borough Council is expected to vote on January 13 to authorize its solicitor and borough manager, C.J. Mustacchio, to schedule a public hearing for a zoning amendment. This proposed ordinance would designate data centers as a conditional use, restricting them to industrial land south and east of the Casey Highway within its CM-2 district—the borough's most restrictive zoning zone. "I think it will protect us," Mustacchio said in an interview, citing the remote location, existing district regulations, and the borough's unique direct involvement in electricity distribution as key protective measures.
Although no formal applications have been submitted, developer interest exists, particularly for the upcoming Triboro Industrial Park located within the proposed zone. The Missouri-based Sansone Group has invested approximately $80 million since June to purchase four lots in this park. Marketing materials for two of these lots advertise them as "build-to-suit opportunities" with notes of up to 60,000 amps of available electricity—a clear indicator of data center suitability. Any developer would require new land development approval for a change of use from the originally planned warehouses.
The proposed legislation includes a comprehensive set of conditions. Data center buildings would be capped at 80 feet in height with significant setbacks, especially near residential areas. Critically, facilities must use utility-provided power, prohibiting on-site generation, though backup systems are permitted. They will also be subject to detailed water and electrical impact studies, with developers bearing the cost for any necessary upgrades to service lines or substations. Additional provisions cover noise reduction verified by acoustic experts, architectural standards, security, and strict controls on environmental impacts like dust and glare.
A notable clause addresses community concerns about long-term abandonment, a sensitive issue in a region still marked by remnants of the coal industry. The ordinance requires developers to post security for future decommissioning. "If they don't do it within a certain amount of time... the removal can be done by the borough, and the cost shall be assessed by the owner of the property," Mustacchio explained.
Olyphant's approach mirrors a regional trend where Lackawanna County municipalities use conditional use zoning to maintain oversight, requiring public hearings and adherence to local conditions. This strategy helps municipalities comply with state law mandating they allow all lawful land uses somewhere within their borders, thus avoiding "exclusionary zoning" legal challenges currently faced by other townships. The borough's ordinance was developed after reviewing models from other local communities and counties.
If adopted, Olyphant will join nearby Archbald, Blakely, Jessup, and Mayfield in having specific data center regulations, as Dickson City also prepares for a public hearing on its own proposed ordinance later in January.
Source: thetimes-tribune
