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Lancaster, Pennsylvania, USA (community benefit agreement for three data centres)

#00234

PartialCity

Case study of

#00224 Negotiate community benefit agreements with numeric, measurable and independently enforceable thresholds

Implementer

City of Lancaster with the data centre developer, and a local community group

Timeline

Since Jan 1, 2026

Location

Lancaster, Pennsylvania, USA (community benefit agreement for three data centres)40.0400, -76.3000

Description

One of the first substantial community benefit agreements attached to data centre development in the United States, covering three facilities totalling roughly 2 million square feet, with 300 jobs and a 20-year term. Financial terms: $20.25 million total, comprising $10 million to a community foundation, $10 million to a clean energy fund, and $250,000 for planning, plus a $10 million letter of credit that decrements $2.5 million per compliant facility. Operational terms: municipal water capped at 20,000 gallons per day per campus, with closed-loop cooling. The water cap is a specific number tied to a specific unit, and the letter of credit pays out without litigation — the two provisions that demonstrably bind. Documented weaknesses from independent legal analysis: the community group received the agreement text two days before the council vote; 'clean energy' is satisfiable with unbundled renewable energy certificates; there are no numeric decibel thresholds; there are no binding local hire percentages; expected energy consumption was not disclosed; and enforcement of remaining terms depends on a resource-constrained city being willing to sue well-resourced developers.

Metrics

5
Total financial commitment20,250,000USD over 20 years
Letter of credit, decrementing per compliant facility10,000,000USD
Municipal water cap per campus20,000gallons per day
Numeric decibel thresholds in the agreement0thresholds
Review time given to the community group before the council vote2days

Funding

$20,250,000 · Developer commitments totalling $20.25 million over 20 years

Lessons learned

  • Terms that are measurable quantities with non-judicial remedies survive; the water cap and the decrementing letter of credit are the two provisions that will actually bind.
  • Omitting numeric decibel thresholds from a data centre agreement leaves out the most common resident complaint. Any future agreement should carry property-line limits with a measurement method.
  • Two days is not a review period. A minimum review window should be written into the local process rather than negotiated project by project, since the community party has the least leverage at the moment of the vote.
  • Enforcement that requires a city to sue a developer is enforcement that will not happen. Escrow, letters of credit, and staged contingent payments are the mechanisms that work at this resource asymmetry.
  • Undefined 'clean energy' can be satisfied with unbundled certificates. Specify the procurement mechanism, not just the label.

Documented Jul 28, 2026

Author AvatarGerard Antoun

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