Developers of Philadelphia’s under-construction Bellwether District have shown some dedication to community feedback. What hasn’t happened at the quarterly meetings: answering one of residents’ common questions.
Is a data center coming to the giant South Philly site or not?
“I cannot confirm any media reports [about data centers],” Amelia Chasse Alcivar, developer HRP Group’s executive vice president of corporate affairs, told residents at the Nov. 18 virtual gathering, adding, “I cannot deny them either.”
Tthere’s a big push to build data centers across Pennsylvania, and the site has all the specs it would need to house one.
The land, which hugs the Schuylkill River’s east bank and covers 1,300 acres, was once an oil refinery before a 2019 explosion led to its shutdown. After major cleanup and environmental remediation, it’s being redeveloped as an industrial park. Because HRP is building out shells that will later be fitted for specific clients as it makes deals, just about anything could go in, as long as it fits the zoning.
Often referred to by residents as the Hilco site (HRP spun out from Hilco in September), the Bellwether’s promotional material frames it as perfect for “e-commerce, logistics, life science and innovation leaders.” Last week, it signed its first customer: canned beverage manufacturer DrinkPAK.
So why all the chatter around data centers? Because there’s a big push to build them across Pennsylvania, and the site has all the specs it would need to house one. In August, Alcivar told Technical.ly it was “definitely entertaining those conversations,” but did not give a more concrete answer.
“We’re not building data centers on a speculative basis,” Alcivar said. “We’re leasing portions of the site to tenants, and we’re absolutely open to those types of users.”
Pennsylvania’s vast energy sources and land availability have made it a target for developers and tech companies to build more data centers. Amazon is investing billions, while other firms are pouring cash into upgrading the electrical infrastructure to support them.
What’s driving the boom? AI-focused companies require a massive amount of data to train their machine learning models. These models also require significant computational power to produce valuable outputs. As AI tools become more widely adopted, the demand for data centers also increases because all of the data needed to run AI programs needs to be processed somewhere.
The right zoning and access to power
Philadelphia’s zoning code does not explicitly list data centers as a distinct use, but they are considered on a case-by-case basis in industrial zones.
The Bellwether District is zoned I-3, which is for “intensive, high-impact uses, including extractive industries and petroleum processing and storage.” That includes everything from transportation terminals to junkyards and mining. The data center just north of Center City at 401 Broad Street is also zoned I-3.
Bellwether is also a part of the commonwealth’s Permit Fast Track Program, touted by Gov. Josh Shapiro as cutting roughly 18 months from project development timelines. Of the seven current projects operating under the program, three are data centers (in Falls Township, Hazle Township and Salem Township).
Data center development is booming across the state, fueled by private sector investments, these fast-tracked permits, visions of increased GDP and the promise of property tax revenue for host municipalities.
At HRP’s November meeting, a community member asked if the developer would be building a gas-fired power plant to support its energy needs at the Bellwether site.
The developer had previously said two under-construction buildings on the industrial campus would house up to 10 to 12 megawatts of power when complete. That’s enough to power at least five small data centers (for reference, the average home uses about 0.0012 megawatts at any given time).
Alcivar answered that gas power generation is not in the current plans, though she declined to clarify to Technical.ly whether it could still be considered or is completely off the table.
“At this time, we do not have plans to build a traditional power plant on the site,” Alcivar said, citing plans to build out at least six million square feet of solar panels on its rooftops. Bellwether is working with PECO to make sure the infrastructure is in place to support local energy needs.
Jobs…and environmental concerns
HRP continues to quickly develop the Bellwether District, with more tenant announcements expected next year. Environmental remediation projects have reduced emissions and removed harmful waste from the site, according to the group.
And the DrinkPAK signing is considered a big win. A press release from the governor’s office predicts that the company’s $195 million investment, plus $2 million from the commonwealth, will create 174 new jobs by 2028.
“This project is a tremendous win for the Bellwether District, as well as the commonwealth’s manufacturing industry,” Department of Community and Economic Development Secretary Rick Siger said in a statement, adding that it’s “one of the important sectors we’re focusing on in our 10-year economic development strategy.”
If a data center were to be built at the Bellwether District, that could bring advantages. The structures bring the promise of jobs and economic opportunity as they retrofit old industrial sites and make them productive in a new era.
But it’s not that simple. Environmental concerns, strain on the power grid and even residential electricity bills going up to accommodate large loads are all hitting Pennsylvania communities. Similar impacts have been playing out in other regions.
HRP is soliciting feedback on all aspects of its proposals via its quarterly meetings, community advisory panels, site tours and meetings with local groups, Alcivar said.
“In general, and not speaking specifically to any type of tenant,” Alcivar said, “we have a wide variety of avenues to gather community input and feedback.”
