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Officials deny controversial 1.9 million square foot data center proposed for Pennhurst site, likely setting up a court battle

The refusal is a win for residents, but the developer plans to appeal.

People opposed to a data center proposal at the former Pennhurst state hospital grounds attend an East Vincent Township supervisors meeting, Dec. 17, 2025, in Spring City, Pa. The board voted on May 21, 2026, to deny the proposal for the project, but the developer plans to appeal.
People opposed to a data center proposal at the former Pennhurst state hospital grounds attend an East Vincent Township supervisors meeting, Dec. 17, 2025, in Spring City, Pa. The board voted on May 21, 2026, to deny the proposal for the project, but the developer plans to appeal.Read moreMarc Levy / AP

East Vincent township officials rejected the controversial proposed 1.9 million-square-foot data center at the historic Pennhurst State School and Hospital site on Thursday, teeing up a potential court battle as the developer plans to appeal the decision.

It will kick off a new chapter for the project, which has been planned for the 125-acre parcel that serves as a Halloween attraction.

Despite the plans to appeal, the board’s unanimous rejection of the project was a win for residents who for months have vehemently campaigned against the proposed data center and pleaded with the township’s three elected officials to refuse the project. They loudly applauded the board’s vote Thursday night.

The vote came during the second conditional use hearing for the project, where the board was weighing which zoning criteria applied to the application, and whether the plan met those standards. The officials ultimately decided the application did not fully comply.

The decision wasn’t exactly a surprise to the developer. Matt McHugh, an attorney for the Pennhurst Holdings LLC, said they knew there was a strong possibility that the board would use an interpretation that didn’t allow for the project. He said he plans to appeal the board’s decision, which will put the case before Chester County’s Court of Common Pleas.

McHugh said that the township has a legal obligation to provide zoning for a data center, and since the municipality hasn’t done that through a specific ordinance, “we’re stuck with what’s in effect at the time.”

“This was one of the pathways available to us, but the board of supervisors has made determinations that make it so a data center isn’t viable under that theory,” he said. “We’ll appeal that, but we also have other challenges that are filed and pending as to whether East Vincent Township has met their obligation to allow a data center in their township or not.”

The proposed data center site — consisting of three two-story buildings, plus a power generation and battery storage field to serve the data center — sits not far from the Schuylkill River, homes, and the Southeastern Veterans Center.

The proposal has received staunch opposition from residents, who have turned out to public meetings in force, asserting concerns about the impact on the environment, health, and the power grid. The township’s planning and environmental commissions recommended rejection last month. Even elected officials in neighboring Spring City asked the supervisors to reject the project.

Data centers have seen widespread backlash in recent months, as plans have become more common in Pennsylvania. Municipal leaders are racing to draft ordinances to address such uses to get ahead of any developers that might come knocking. Legislation at the state level has sought to address the issue, including from state Sen. Katie Muth, an East Vincent resident, who is proposing a data center moratorium.

The vote in East Vincent drew praise from those who have advocated against the projects.

Muth called the vote a “a big win” in a Facebook post Thursday, but acknowledged “this battle is likely not over.”

“I am relieved that the Board of Supervisors did their job and made decisions based on legal zoning standards and ensuring decisions were made in the best interest of the PUBLIC, not big tech bros seeking to profit off of poisoning our community,” she wrote.

John Binelli, who created a Facebook page to raise awareness about the East Vincent project and amassed more than 2,600 members, called the vote “bittersweet.”

“This is only the beginning,” he said. “The Pennhurst lawyer likely has some other tricks up his sleeve, but we will be ready. We’re fighting for our lives and Pennhurst LLC is fighting for profit.”

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