Developer Proposes Major $1.7 Billion Data Center Campus in Pennsylvania
April 20, 2026
A significant new data center project is under consideration for Pennsylvania's Lebanon County, highlighting the continued expansion of digital infrastructure beyond traditional major metro hubs. The proposed campus represents a potential economic windfall for the local area while also bringing to the fore the complex trade-offs between regional economic benefits and broader utility rate impacts associated with data center growth.
During a presentation to the Lebanon County Commissioners this past Wednesday, property developer Inch & Company outlined preliminary plans for a massive data center campus in South Annville Township. The project, valued at approximately $1.7 billion, would involve constructing five data center buildings totaling about 640,000 square feet across a 100-acre site near Mt. Pleasant Road. According to the developer's timeline, the campus would be built in three phases, with one phase slated for completion at the end of each year from 2027 through 2029.
The scale of the investment promises substantial local fiscal benefits. Inch & Company estimates the development could generate over $17 million in annual tax revenue, to be shared among Lebanon County, the Annville-Cleona School District, and South Annville Township. This potential revenue is a key part of the developer's outreach, as addressed in materials provided to residents. The handout acknowledges that residents in the PJM Interconnection region, which spans 13 states including Pennsylvania, "are already experiencing electric rate impacts from data center growth." It argues that these "regional rate pressures" will persist regardless of this specific project's location. "If the data center is built elsewhere, South Annville receives no offsetting tax benefit while still experiencing the regional rate impact," the document states.
Despite the detailed presentation, no formal application for the project has been submitted to local authorities as of this reporting. If approved and constructed, the campus would mark a notable geographic shift for Pennsylvania's data center industry, which is currently concentrated primarily in the Philadelphia and Pittsburgh metropolitan areas. Data Center Map indicates no existing facilities in Lebanon County, suggesting this project could establish a new cluster for digital infrastructure in the region. The proposal underscores the ongoing national trend of data center development seeking sites with available power and land, often bringing significant capital investment and tax revenue to new communities, alongside intensified discussions about energy consumption and grid impacts.
Source: datacenterdynamics
