How Pennsylvania Can Use Abandoned Mines for Data Center Hubs

In previous articles, we have discussed (i) geothermal energy (heat from within the earth) as another source of renewable energy for heating and cooling of buildings, but whose use has been virtually non-existent in Pennsylvania; and (ii) land development challenges that data centers impose, requiring substantial amounts of electricity and water to power, heat, and cool them. This article discusses the role abandoned mine sites potentially can play with respect data center development.

Potential Sites for Data Centers - Why Former Mine Sites Are Being Considered

• Across the United States, thousands of former mining sites stand idle -- neither used nor repurposed. Often these sites are in areas that have experienced economic decline and present environmental challenges such as costly reclamation and remediation. At the same time, the rapid expansion of artificial intelligence, cloud computing, and digital infrastructure is driving unprecedented demand for new data center locations. These parallel trends have prompted developers, policymakers, and engineers to explore whether former mine properties could be transformed into viable technology campuses.
• Modern data centers require substantial parcels of land, reliable power access, and effective heating and cooling solutions. Former mining properties are large, comprising several acres, allowing for initial construction and future expansion. They may already have industrial zoning classifications, existing roads, electrical infrastructure including transmission lines and substations, and other infrastructure to reduce permitting delays and construction costs. In addition, such sites are frequently located in regions seeking economic revitalization and replacement of lost tax revenues, making them attractive candidates for redevelopment initiatives.
• Another key advantage is cost. Properties with prior industrial use or environmental limitations can often be acquired at lower prices than undeveloped land near metropolitan areas. For companies planning major infrastructure investments, this cost difference can significantly enhance project feasibility. Further, the location of these mines may serve to mitigate the concerns local residents have with the development of data centers in their area.
• In a few places in the United States, such as an Iron Mountain data center in Boyers, PA, a data center has been located inside an abandoned limestone mine. Northeastern Pennsylvania boasts an abundance of abandoned anthracite coal mines in counties including Luzerne, Lackawanna, Schuylkill, and Northumberland. Yet despite the nearly 10,000 abandoned mines in the state, no data center has been constructed inside or on the surface of any abandoned underground coal mine in Pennsylvania. In western Pennsylvania, a data center is proposed to be built at the former Robena Mine site in Greene County, and span 1,400 acres along the Monongahela River. And in Washington County, the proposed “Zediker Station” data center is to be located on a 1,500-acre former coal mining site.

Geothermal Energy Potential

• With respect to electricity and water consumption, large data centers can consume up to five million gallons of water per day, equivalent to the water use of a town populated by 10,000 to 50,000 people, and 20-100+ megawatts of power continuously. In 2023, U.S. data centers alone consumed 176 terawatt (TWh)-hours of electricity, equivalent to the amount required to power 16 million homes for an entire year, and 4.4% of the total U.S. electricity consumption. The projected consumption for is 2028 325-580 TWh, which is 6.7-12% of total U.S. electricity consumption.
• These levels of consumption strain existing electricity grids and freshwater resources. For example, the above-mentioned data center at the former Robena mine would draw water from the Monongahela River.
•  Former mines in Pennsylvania contain vast amounts of water, estimated at more than one trillion gallons. Given the temperatures of mine water, employing geothermal technologies would mean this water can be used for two key purposes:
• To generate electricity to power data centers; and
• To cool data centers. Because server equipment generates substantial heat, maintaining stable temperatures is essential for safe operation and energy efficiency. In some scenarios, these natural reservoirs could support mid‑scale to large computing operations, creating a potential alternative to conventional cooling systems that rely heavily on mechanical chillers or cooling towers.
• Locating a data center at a former underground mine site would also utilize mine water right at the site. But even data centers not located at a mine site would have the potential to take advantage of mine water via pipeline transport. For example, while not involved with underground coal mines, Loudoun Water in northern Virginia, home to numerous data centers, has built a 20-mile, specialized pipeline infrastructure to deliver  to some data centers for cooling. In 2024, this system delivered 736 million gallons of reclaimed water.
• Further, open pit anthracite mines and limestone quarries in Pennsylvania contain large quantities of water that also are a potential source of cooling for data centers.

Because these risks vary widely from site to site, developers typically need multidisciplinary assessments involving environmental engineers, geotechnical specialists, and legal advisors.

Zoning and Land Development Consideration

From a legal standpoint, one of the most significant hurdles is that many municipal zoning codes were written before data centers became common infrastructure. In some jurisdictions, then, the term “data center” does not appear in zoning definitions. Further, using abandoned coal mining sites and the water at these sites presents novel issues that have not previously been addressed by municipalities in Pennsylvania.

Such issues can affect project timelines because variances or special exception approvals often require planning commission review, public notice, and hearings before local governing bodies. In addition, large facilities typically qualify as major land developments, triggering additional land development requirements.

Engineering and Environmental Considerations

• A key issue relating to the use of abandoned mines and the use of mine water concerns compliance with applicable laws and regulations. Specifically, the reclamation of mines in Pennsylvania is governed by the federal Surface Mining Control and Reclamation Act (SMCRA). This Act provides that states eligible for reclamation under the act must also prepare and submit a State Reclamation Plan. Pennsylvania's Abandoned Mine Reclamation Plan, originally prepared in 1983, was updated in 1992 and 1997 to incorporate changes resulting from congressional amendments to SMCRA.
• Further, the federal Clean Water Act and Pennsylvania’s Clean Streams Law, both of which address water quality, may impact data center development at former mine sites.
• Interaction with Pennsylvania’s Department of Environmental Protection will be necessary to identify permits and approvals that may be required.
• Former mine properties present engineering challenges that must be evaluated carefully. Notably, ground stability concerns and incomplete site data can complicate construction planning.

Legislative Considerations

Currently, Pennsylvania dhas no laws regulating geothermal energy. On Jan. 9, 2026, Senate Bill No. 1131, known as the “Geothermal Energy Development Act,” was introduced. This Act would create the foundational rules needed for responsible geothermal development by:

• Authorizing the Department of Environmental Protection to regulate geothermal injection wells and create a permitting process;
• Defining “geothermal resources” broadly to encompass all geothermal technologies;
• Establishing subsurface ownership rights for geothermal resources; and
• Allowing abandoned oil and gas wells to be repurposed for geothermal use.

Conclusion

Transforming former mine lands into data center campuses represents a novel approach to redevelopment that could align technological growth with environmental restoration and regional economic development. This could offer economic incentives from the state and perhaps the local level to attract large technology infrastructure projects. These incentives might include tax abatements for redevelopment sites, exemptions on equipment purchases, financing structures that allow future tax revenue to be used to support construction costs, and public-private partnerships.

If carefully planned and responsibly implemented, such projects have the potential to convert underutilized industrial properties into productive assets that support modern digital infrastructure. Further, the use of water from abandoned mines employing geothermal technologies potentially offers a substantial opportunity to meet the increasing power and water needs of data centers.

About the Author – Law of the Land

John F. Lushis, Jr., Esq., is a Member of Norris McLaughlin, P.A. working out of the firm’s Allentown office. He focuses his practice on real estate, commercial transaction law, environmental law, financings, and renewable energy projects. John has an undergraduate degree in mechanical engineering as well as extensive experience with bituminous and anthracite coal operations and oil and gas leases.