Swatara Township Secures $120.3 Million in Data Center Contributions in Pennsylvania
Swatara Township's Board of Commissioners last week approved community benefits agreements that secure a combined USD 120.3 million from developers behind two proposed data center projects in Dauphin County. Of that total, USD 84.15 million is tied to Highlands West and USD 36.15 million to Highlands East, according to the board.
Public safety dominates spending plan tied to developer payments
The largest share of the funding is directed toward public safety. A USD 38 million allocation will fund construction of a joint police and fire headquarters and emergency operations center.
A second public safety facility, planned to include a fire station, police substation, EMS support and a backup emergency operations center, will receive USD 24 million.
Staffing commitments account for another USD 12 million, covering career firefighter positions, recruitment and retention, firefighter pension funding, and future police, public works and code enforcement staffing.
Fire apparatus replacement is set to receive USD 8 million, while USD 3 million is earmarked to replace patrol vehicles, upgrade technology and communications, and provide equipment for critical infrastructure protection.
A further USD 3 million would create a municipal training facility for fire, police and EMS training, emergency-response exercises and emergency-management preparedness.
Project sites and prior land sale
Preliminary plans from the developers show Highlands West is expected to be built over the Dauphin Highlands Golf Course at 650 South Harrisburg Street, while Highlands East would be located at 4951 Highland Street.
The township did not release a construction timeline or completion date for either facility. The golf course property involved in the Highlands West proposal was sold for USD 45.6 million to make way for the data center, converting the land from recreational use to a development site. The proposals have been locally described as controversial.
The Swatara Township Planning Commission heard public comment during a meeting on Sept. 8, 2026, giving residents an opportunity to weigh in on the projects before the board's approval of the agreements.
Infrastructure, operations and resident support allocations
The second-largest single commitment in the package is USD 27 million in restricted long-term funding for roads, public works equipment, snow removal, facilities, parks, technology, capital reserves and debt and service stabilization.
Another USD 4 million is designated for operating-cost stabilization, including residential trash collection, assistance for seniors, veterans and residents in hardship, fee stabilization and taxpayer-impact mitigation.
The agreements also direct USD 1 million toward scholarships for township residents and training programs intended to support data center workforce readiness.
The remaining USD 300,000 is allocated for solicitor, engineer and consulting fees.
Milestone-based payment structure
The full USD 120.3 million will be paid in installments based on development milestones, the township said. Under this structure, the flow of funds to the township's planned initiatives will correspond to progress on the two data center projects rather than arriving as a single upfront payment. The arrangement applies to both the USD 84.15 million associated with Highlands West and the USD 36.15 million associated with Highlands East.
Scope of the township announcement
The township's announcement did not identify the developers, describe the size of the facilities, or specify the technology to be housed at either site.
No construction schedule was provided.
The board's approval formalizes the contribution commitments between the township and the developers, with payments now structured around milestones as the Highlands West and Highlands East projects advance.