PA Environment Digest Blog: Senate Hearing: DEP Primer: Recurring Challenges Of A.I. Data Centers: Frequent Site Plan Changes, Inconsistent Zoning, Outdated Sewage Facilities, Limited Community Outreach

In written comments submitted to the Senate Republican Policy Committee on August 11, the Department of Environmental Protection outlined the opportunities of A.I. data center development, but also what they called "recurring challenges" of obtaining environmental approvals for individual projects.

The comments offer a primer for citizens, communities and developers to more easily understand what environmental approvals are needed for A.I. data center projects and resolve issues early in the process..

Environmental Approvals

"Data center development in Pennsylvania typically requires a range of environmental

authorizations from the Department of Environmental Protection to be compliant with state and federal laws and regulations.

"These may include federal Clean Water Act Chapter 102 National Pollutant Discharge Elimination System (NPDES) permits for earth disturbance activities and postconstruction stormwater management (PCSM).

"If the project involves stream crossings or wetland impacts, Chapter 105 Water Obstruction and Encroachment Permits are necessary. Pennsylvania Act 537 Sewage Facilities Planning is required to address sewage disposal needs and accommodate any proposed wastewater discharges.

"Depending on water use, developers may also need approvals or dockets from the Delaware River Basin Commission (DRBC) or Susquehanna River Basin Commission (SRBC) for water withdrawals. Discharges from sewage, wastewater, or cooling water also require NPDES permits.

"On-site non-community drinking water systems must comply with the Safe Drinking Water Act. Construction of wastewater or sewage treatment facilities may require Water Quality Management (WQM) permits, and Storage Tank site specific installation permits (SSIPs) are required for aboveground tanks.

“In terms of air quality (AQ), facilities utilizing on site power generation and backup generators will need Air Quality Plan Approvals, Title V Operating Permits, or Minor Air Quality Plan Approvals, depending on the scale.

"Lastly, data center projects often involve coordination with multiple agencies, including the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, the Pennsylvania Fish and Boat Commission, and our County Conservation Districts.”

Related Infrastructure Approvals

"Data center development presents several evolving environmental permitting challenges, largely due to the rapid pace of technological and site plan changes.

“Frequent revisions to site layouts can significantly impact the Chapter 102 (NPDES) erosion and sediment control and PCSM and Chapter 105 Water Obstruction and Encroachment permitting processes, as well as Act 537 sewage planning, requiring repeated updates and re-evaluations.

"Additionally, variability in cooling technologies leads to differing proposals for water withdrawals and discharges, complicating both water resource and wastewater permitting.

"Meeting the substantial power demands of data centers often involves off-site energy infrastructure, ranging from the expansion of energy grid infrastructure such as new high-voltage electric transmission lines to the extension of new natural gas pipelines—each requiring separate and coordinated Chapter 102 and 105 permits.

"Developers also increasingly rely on on-site generation and backup generators, triggering Air Quality applications, and the installation of large fuel storage tanks, which necessitates SSIPs.

"These complexities are further intensified by the need for enhanced public awareness and participation through public meetings, hearings, and compliance with Right-to-Know Law requests, all of which add time and administrative burden to the permitting timeline."

Avoiding Delays

"We recognize that the pace and complexity of these projects require proactive planning and early engagement with regulatory agencies.

"Based on our experience with recent proposals, we continue to emphasize a few key permitting and coordination strategies that can help developers navigate the regulatory landscape more efficiently.

"These strategies—ranging from early pre-application meetings to upfront evaluations of sewage, air quality, ecological, and federal water resource requirements—can significantly reduce delays, prevent costly redesigns, and streamline approvals."

Recurring Challenges

"While Pennsylvania offers strong potential for data center growth, we’ve also identified several recurring challenges that can hinder progress if not addressed early in the planning process.

"These challenges are often not technical in nature, but rather stem from misalignment between development goals and local infrastructure, land use planning, and stakeholder engagement.

"Understanding and addressing these barriers—from outdated sewage facilities plans to inconsistent local government planning, frequent site plan changes, and limited community outreach—can make the difference between a delayed project and a successful one.

"The following areas represent some of the most common and consequential issues we’ve observed in recent data center development efforts across the Commonwealth.

-- Outdated Act 537 Plans and Overloaded Wastewater Systems. “Many municipalities are working with outdated Act 537 sewage facilities plans, which limits the ability to properly plan for and accommodate new development.

“In some cases, public wastewater systems are already hydraulically overloaded, meaning they cannot handle additional flows without risking system failures, like overflows or treatment facility upsets.

“This creates significant barriers to approving new economic development projects and makes coordination between developers, municipalities, and state agencies more complex and time consuming.”

-- Development Projects Inconsistent with Regional or Comprehensive Plans. “Economic development efforts are often slowed when proposed projects do not align with existing municipal or regional comprehensive plans, which is a key consideration under Pennsylvania Acts 67 and 68 of 2000, which amended the Municipalities Planning Code.

“These laws require that state agencies consider whether proposed projects are consistent with local planning efforts before approving funding or permits.

“When development proposals lack this consistency, it triggers additional coordination among agencies, municipalities, and developers, leading to delays, uncertainty, and sometimes the need for costly plan amendments or redesigns.

“Clearances under Acts 67 and 68 are essential for aligning economic development with long-term community goals and infrastructure capacity.”

-- Frequent and Substantial Revisions to Site Development Plans. "Our application processes are further complicated when development proposals undergo multiple rounds of revisions, often due to a lack of early coordination with key stakeholders or failure to address planning and infrastructure constraints up front.

"Each revision can trigger additional reviews and approvals by the local municipality or county, causing significant delays and undermining confidence in the project timeline. This can strain agency resources and reduce the efficiency of interagency collaboration.”

-- Insufficient Community Outreach. “Coordination on economic development projects often breaks down when community outreach is not conducted early and effectively, especially in the context of PA DEP permit application reviews.

“When residents and stakeholders are unaware of a proposed project or feel excluded from the planning process, it can lead to heightened opposition during the formal public comment period, resulting in contentious public meetings, hearings, and potential delays.

“Proactive outreach—such as early engagement with local officials, community groups, and the public—helps build trust, surfaces concerns early, and often leads to project modifications that address community needs while maintaining regulatory compliance.

“This can significantly reduce conflict during the permitting process, streamline DEP reviews, and enhance the likelihood of a smoother path to approval.

“Effective community engagement is not just good practice—it’s a strategic tool for minimizing risk and maintaining momentum on key economic development initiatives."

"The Department is committed to providing regulatory clarity, permitting efficiency, and early coordination with developers, while upholding its mission to protect Pennsylvania’s air, land, and water—and to safeguard the health and well-being of our communities—consistent with the rights and duties established under the Environmental Rights Amendment (Article 1, Section 27 of the Pennsylvania Constitution).

“We remain dedicated to working in partnership with industry, local governments, and stakeholders to ensure that this growth aligns with environmental standards, community values, and long-term sustainability goals.”

Click Here for a copy of DEP's testimony.

Click Here for a video of the August 11 hearing and other testimony.

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