Bethlehem Reviews Data Center Rules, Apartments on Stefko; 130,000-Square-Foot Data Center Plan Is Being Reviewed by City Staff

Aug. 25, 2026

— Jeff Ward, Lehigh Valley News Briefs

Bethlehem’s Planning Commission met Tuesday to discuss new rules for data centers and an 18-unit “affordable” apartment building on Stefko Boulevard.

Also, a city official said a plan for a 130,000-square-foot data center at 2184 Industrial Drive has been submitted and is being reviewed.

Final decisions on the zoning amendment and developments that require variances are up to Bethlehem City Council.

First, the commission reviewed the data center ordinance: A proposed zoning amendment adds the definition of a data center.

Data centers are not new but they are getting bigger and more powerful, setting off fear about demand for water and electricity, and potential noise. Compounding the concern is wariness about Artificial Intelligence and “hyperscalers,” the big technology companies that build them.

The centers are huge buildings filled with computer servers. They process information and generate heat. Companies such as Amazon, Google and others use them.

Bethlehem can’t ban the use. Cathy Fletcher, director of planning and zoning, laid out some ground rules the city must follow:

“Under state law we must allow for all land uses in any zoning ordinance,” she told the commission. “We can determine where a particular land use is allowed and have some requirements for that specific use but can’t make it not feasible to actually build them.”

That means the city can’t implement a “backdoor” policy that has the effect of blocking centers.

The zoning amendment says centers would only be allowed in Industrial zoning districts.

Fletcher added that a 130,000-square-foot data center has been proposed for the city and is being reviewed. That proposal is being looked at by city staff and was not part of Tuesday’s meeting. Craig Pfeiffer of the planning and zoning department identified the property as 2184 Industrial Drive.

Planning Commission Chairman Robert Melosky asked that the city be protected from having to deal with the remains if a center closes.

“We certainly as taxpayers of Bethlehem don’t want to be left responsible for any removal of obsolete equipment,” Melosky said. Later, he said, “I think the city is taking the right approach” in setting reasonable standards.

The Planning Commission voted to send the amendment to City Council, which will make the final decision. Council will hold a public hearing on the issue Oct. 6, and then will have to vote twice before the current ordinance is changed.

The proposed “workforce-focused” Stefko Boulevard studio apartments plan is for 18 units of 478 to 488 square feet. Property owner Fred Ronca said nearby workers, such as those at Just Born Candy, next door, would be the target market. LANTA has stops nearby and there are stores in walking distance.

“They are intended for singles or couples,” Ronca said. “They’re not intended for families.”

Ronca said the city has promoted the idea of “affordable housing” and the plan needs some relief from zoning rules to make the apartments less expensive.

The main issue is density, meaning the number of units at 1438 Stefko Blvd. Under current rules, 10 are allowed, not 18.

Commission member Matthew Malozi suggested the developer consider fewer units.

Parking is also an issue.

Michael DeCrosta of More Miles Automotive on Stefko Boulevard said parking in the area is already tight and that 17 spaces for 18 units is not enough.

He said other business operators in the area are also concerned about parking. DeCrosta added, “Nobody wants to see you (the developer) succeed more than I do.” He added that the building at the site now is not an asset to the neighborhood and change would be welcomed.

Discussion of potential rent for the apartments was not entirely audible, but one person threw out a price of $1,300, although affordability varies with income. Don’t rely on that number. The project is a long way from being set and a longer way from being constructed.

The Planning Commission, led by Chairman Melosky, and the Planning Department make up an oasis of common sense in City Hall where some people digress to discuss global issues, not local problems. The commission members ask good questions and stick to business. They can’t block an unpopular project but they can suggest ways to improve it.

Melosky said he viewed the 1438 Stefko site Tuesday and said the property needs improvement.

The commission viewed the Stefko project only as a “sketch plan.” That means the members provided feedback, but no final decisions were made on the preliminary proposal.

Here’s a link to the agenda and for hardcore Planning Department fans, here’s where you can see the meeting video.

Delayed: the housing development off Township Line Road was taken off the agenda. The 65-unit development will be reviewed later IF the builder is moving ahead with it. Autumn Estates, on land known as the Gold Tract, is a plan for 65 houses between Route 22 and Monocacy Creek, with 19 in the city and 46 in Bethlehem Township.

Not on the agenda was East Boulevard Crossing, a three-story 14- or 16-unit apartment building planned for the intersection of North and East boulevards, not far from the Wawa on Easton Avenue.

Neighbors mostly live in one-story homes and the idea of an apartment building looming over their yards is not popular.

Disclosure: I own shares in some data-center companies including Google, Nvidia, Amazon and PPL, which seeks to attract data centers.