City Council has approved a six-month moratorium on new data center proposals, invoking a little-used provision of state law and buying time to write zoning regulations before the fast-growing industry can gain a foothold in the city.
The resolution, which recently passed unanimously, declares the city’s zoning ordinance deficient because it does not specifically regulate data centers and directs officials to prepare a municipal curative amendment within 180 days.
During that period, the city will not consider zoning permit applications or other approvals for data centers or similar facilities.
The measure, advanced by Councilman Jaime Baez Jr., received support during the meeting’s public comment period. Several city residents and members of Berks Stands Up spoke in support of the moratorium, citing concerns about the industry’s potential effects on water supplies, electricity demand and the environment.
During a previous discussion at a council meeting, Council Solicitor Michael Gombar said the state allows municipalities to declare their zoning ordinances substantively invalid when they fail to address a particular land use.
Data centers, which house computer servers and networking equipment supporting cloud computing, artificial intelligence and other digital services, are not specifically addressed in Reading’s zoning ordinance, he noted.
“There is some broad-based language that I think, in a worst-case scenario, we could point to in the event of a proposed permit application being submitted before any ordinance is adopted,” Gombar said.
But, he said, those provisions lack standards governing issues such as water consumption, electricity demand, environmental impacts and operational requirements.
“It’s probably not the best option to rely on that broad-based language that we have currently,” Gombar said.
The curative amendment process effectively gives the city six months to draft, review and adopt zoning regulations while preventing data center proposals from moving forward during that time.
“The moratorium part is nice, but then it does allow you the flexibility that you’re not acting under urgent circumstances and maybe rushing to judgment when trying to put together an ordinance,” Gombar said.
State law limits municipalities to using the curative amendment process once every three years, Gombar said, noting he is unaware of Reading using the procedure previously.
Baez described the effort as a proactive step to ensure safeguards are in place before any applications reach the city.
“It is to protect our land, it is to protect our air, our water, but most importantly, it is to protect our residents,” he said.
Baez said the draft amendment to the zoning ordinance draws on regulations adopted or considered by other Pennsylvania municipalities, including Kutztown and Allentown, but was tailored for Reading.
Under the proposal, data centers would be permitted only as a conditional use within the city’s heavy manufacturing district, requiring council approval before any project could proceed. The proposal also details operational standards, including a requirement for closed-loop cooling systems that recycle water to reduce demand on public water supplies.
Council President Donna Reed said protecting natural resources is one of her primary concerns.
“When I think of the consumption, the water consumption, everything else involved with it, it certainly gives me a lot of concerns,” she said.
Although some officials questioned whether Reading has sufficient land to attract a major data center, Baez said the city should prepare regardless.
David Barr, the city’s community development director, called the draft amendment comprehensive and robust, but said it deserves a thorough review by city departments, the planning commission and other stakeholders before final adoption.
The resolution directs council and the planning commission to complete that review and enact a permanent zoning amendment within the six-month deadline.