Data Center Developer Eyes Pennsylvania Site, Boosting Local Investment

Executive Summary

A Maryland-based data center developer is targeting a former healthcare site in Lackawanna, Pennsylvania, for a new data center project, signaling continued demand for shovel-ready, repurposable land in secondary markets. The project reflects a broader reuse trend: tech infrastructure developers are increasingly bypassing greenfield sites in favor of brownfield and adaptive-reuse parcels with existing utility connections and cleared titles. Local investors and technology firms stand to benefit from the economic activity; existing landowners in the area may face repricing pressure as comparable parcels gain attention. For InfraSale users, this is a marker that northeastern Pennsylvania is entering the data center site acquisition conversation in a meaningful way.

What Happened

A Maryland-based data center developer has proposed building a new facility in Lackawanna County, Pennsylvania, on a site previously occupied by a healthcare business. The project, reported by The Times-Tribune of Scranton, would repurpose the former healthcare property into tech infrastructure, representing a notable shift in how underutilized commercial real estate is being repositioned in the region.

Details on the specific acreage, megawatt capacity, or named developer were limited in the available source excerpt. The story was written by Frank Lesnefsky of The Times-Tribune and indicates that the developer is seeking to expand its footprint into the Lackawanna market — suggesting this is not a one-off project but part of a deliberate regional growth strategy.

The timing aligns with accelerating national demand for data center capacity driven by artificial intelligence workloads, cloud expansion, and enterprise digital transformation. Lackawanna County, anchored by Scranton, sits within reach of major northeastern population and business centers, making it a plausible secondary market target for developers priced out of Northern Virginia, New Jersey, or the Philadelphia suburbs.

Source: PennLive / The Times-Tribune

Why This Matters

Secondary markets in Pennsylvania have historically been overlooked for large-scale data center development, with most activity concentrating in the Philadelphia corridor or near major fiber routes. A Maryland developer targeting Lackawanna County specifically suggests that either land costs, power availability, or a combination of site-specific advantages made this location competitive.

The choice of a former healthcare site is significant. Healthcare facilities typically carry robust electrical infrastructure — backup power, substantial HVAC footprints, and, in some cases, dedicated utility feeds — that can reduce a data center developer's upfront capital expenditure on power buildout. Industry context: this reuse pattern has appeared in markets from the Midwest to the mid-Atlantic, where former hospitals and medical campuses are increasingly being converted to tech uses.

For northeastern Pennsylvania more broadly, this project functions as a proof-of-concept. If permitting moves forward and the facility gets built, it will establish Lackawanna as a viable data center address — attracting broker attention, utility interest, and follow-on developer inquiries. That market validation effect is often as consequential as the individual project.

Power & Interconnection Impact

Data centers are power-intensive by definition. Even a modest facility in the 5–20 MW range represents a material new load for a regional utility, and larger hyperscale or colocation builds can demand 50–100 MW or more at full buildout. Industry context: Pennsylvania's electric grid is managed by PJM Interconnection, the largest regional transmission organization in the country, which means any new large load in Lackawanna County would fall under PJM's interconnection and load-serving processes.

The former healthcare site's existing electrical infrastructure may give this developer a head start, but a significant capacity upgrade from the local distribution utility — likely PPL Electric Utilities in that region — would almost certainly be required to support data center-scale power draws. Substation proximity and available capacity on the local transmission system will be key variables in determining whether this project can be built on the developer's preferred timeline.

Interconnection queue positioning and utility load growth agreements are material issues here. Investors evaluating this project or comparable opportunities in the region should treat confirmed utility capacity commitments as a critical diligence checkpoint before any site-level capital commitment.

Land, Zoning & Permitting Impact

Adaptive reuse of a commercial healthcare site does not automatically come with clean zoning for a data center. Pennsylvania municipalities vary considerably in how they classify data centers — some treat them as light industrial, others as commercial technology uses, and some lack specific categories altogether, creating permitting ambiguity.

Lackawanna County and the host municipality will need to confirm that the proposed use is permitted by right or grant a variance or conditional use approval. Community opposition, while not yet documented in the available source material, is a real variable in mid-sized Pennsylvania cities where industrial-scale facilities can generate concerns about traffic, noise from cooling equipment, and aesthetic impact.

Environmental review may also be triggered depending on the site's prior use history. Healthcare sites can carry legacy contamination risks requiring Phase I and potentially Phase II environmental site assessments before financing and permitting can advance. Assumption: any lender or equity partner will require clean environmental clearance as a condition of closing.

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Investors and developers should also account for Pennsylvania's local earned income tax, real estate tax structures, and any applicable Keystone Opportunity Zone designations that could affect the project's economics and timeline.

Investment Takeaway

Adaptive reuse sites are attracting premium developer interest. Former healthcare, industrial, and institutional properties with existing utility infrastructure and cleared titles are increasingly competitive relative to raw land, particularly in secondary markets where new utility service can take years to provision.
Secondary market pricing still offers an entry window. Lackawanna County land values remain a fraction of what comparable parcels cost in Northern Virginia or New Jersey's data center corridors. That spread may compress as the market validates.
PJM-adjacent sites with confirmed substation access are the scarce resource. Power availability — not land cost — is the binding constraint in most data center site decisions. Sites that can demonstrate a credible path to 20 MW or more of deliverable power will command a significant premium.
Permitting risk is real and underpriced. Pennsylvania's municipal-level zoning authority means a single township board can materially delay or block a project. Underwriting should account for 12–24 months of permitting lead time.
Monitor for follow-on developer activity. If this project advances, expect competing developers to survey comparable sites in Lackawanna and neighboring Luzerne County. First-mover landowners who engage now are better positioned to negotiate favorable terms.

InfraSale Market Angle

For investors actively sourcing data center opportunities, the Lackawanna project is a signal — not just a single deal. It confirms that developer appetite for northeastern Pennsylvania sites is real and that the region's combination of affordable land, PJM grid access, and proximity to major northeastern metros is drawing serious capital.

Landowners in Lackawanna and adjacent counties holding commercial or light-industrial parcels near substations should be evaluating their positions now, before comparable transactions establish a new market comp. Developers seeking sites should move quickly to engage local brokers and municipal planners before a competitive market forms.

Utility infrastructure availability, zoning flexibility, and community relations are the three variables that will separate viable sites from time-consuming dead ends. InfraSale users in this market should prioritize due diligence on all three before committing capital.

Market Signal

Location: Lackawanna, Pennsylvania
Primary Issue: new data center development
Infrastructure Theme: land development
Who Benefits: local investors, technology firms
Who's at Risk: existing landowners in the area facing increased competition
InfraSale Takeaway: Investors should engage with local stakeholders to assess potential benefits and risks of the project.

Take Action

The Lackawanna project is an early signal in a market that could move quickly once permitting and utility commitments are confirmed. Developers, landowners, and investors who wait for full project announcement before acting will find themselves behind the curve on site availability and pricing. List a powered land site on InfraSale.

FAQ

What are the zoning requirements for data center development in Pennsylvania?

Pennsylvania does not have a uniform statewide zoning classification for data centers — land use decisions are made at the municipal level, which means requirements vary significantly by township or borough. Developers typically need to establish that a data center qualifies under an existing permitted use category or seek a variance or conditional use approval. Early engagement with local planning staff is essential to identify the most viable permitting path before site acquisition.

How will this data center impact local energy infrastructure?

Data centers are among the most power-intensive commercial land uses, with even mid-sized facilities requiring multiple megawatts of dedicated capacity. In Lackawanna County, this means the local distribution utility — industry context: likely PPL Electric Utilities — will need to assess substation capacity and may need to invest in upgrades to serve the new load. Developers and investors should treat a formal utility capacity study as a prerequisite for underwriting any site in the region.

What investment opportunities arise from the Lackawanna data center?

The project creates several potential entry points: direct land acquisition or sale to the developer, equity participation in the development itself, or investment in supporting infrastructure such as fiber, power generation, or cooling services. Industry context: secondary market data center projects at this stage often carry higher risk but also higher return potential relative to stabilized assets in established markets like Northern Virginia. Investors with local market knowledge and relationships are best positioned to identify and act on these opportunities early.

Is Lackawanna County part of PJM Interconnection?

Yes. Pennsylvania falls within the PJM Interconnection footprint, the largest regional transmission organization in the United States, covering all or parts of 13 states and the District of Columbia. Assumption: any large new load in Lackawanna County would be subject to PJM's processes for load growth and interconnection, as well as local utility distribution agreements. PJM membership generally provides stable grid access but does not guarantee short-timeline power delivery for large new loads.

How does adaptive reuse of a healthcare site affect data center development timelines?

Former healthcare facilities can offer meaningful advantages — existing electrical infrastructure, HVAC capacity, and established utility connections — that reduce both cost and timeline compared to greenfield development. However, they also carry risks including legacy environmental conditions, complex title histories, and structures that may require significant demolition or retrofit. Assumption: a thorough Phase I environmental site assessment and structural evaluation are standard diligence steps before any adaptive reuse commitment.