A new economic and fiscal impact analysis projects that five proposed data center developments in Upper Merion Township could generate approximately $55.4 million in annual revenue across local taxing jurisdictions once the properties are fully developed and operating.

The 33-page analysis was prepared by 4ward Planning after the firm was retained by the developer. It examines proposed data center developments along Renaissance Boulevard, at the Innovation 411, Innovation 511 and Innovation 800 properties, and at 600 River Road.

The analysis was provided to Upper Merion Area Spotlight by a representative working with the developer. The projections have not been independently prepared or verified by the Upper Merion Area Spotlight.

According to the analysis, the developments would generate an estimated $55.4 million in annual revenue across four taxing jurisdictions:

After subtracting approximately $62,000 in estimated additional annual municipal service costs, the analysis projects a net annual benefit of approximately $8.48 million for Upper Merion Township.

The report also projects approximately $1.11 billion in cumulative local tax revenue over a 20-year lease period. That figure represents 20 years of projected recurring revenue and is not a guarantee of what the developments would ultimately produce.

In plain language: The analysis projects approximately $55.4 million in local tax revenue each year after the developments are fully built and operating. The approximately $1.11 billion figure represents the projected combined revenue over 20 years.

The projected tax revenue is based primarily on the future assessed value of the proposed properties.

The analysis estimates that the developments would include approximately 5.08 million square feet of data center space. It assigns that space an estimated taxable market value of $1,000 per square foot, producing a total estimated market value of approximately $5.08 billion.

After applying Montgomery County’s Common Level Ratio, the report estimates a taxable assessed value of approximately $1.51 billion.

Current local millage rates are then applied to that estimated assessment to calculate the projected annual tax revenue.

Because these developments remain in the planning process, their eventual size, assessed value, construction schedule and tax contribution could differ from the projections contained in the analysis.

The report estimates the total facility development and construction cost at approximately $12.4 billion, including approximately $5.08 billion in owner equipment that the analysis excludes from its local economic-impact modeling.

For the approximately two-and-a-half-year active construction period, the analysis estimates an annual average of:

The table included in the report lists 16,914 total annual construction-related jobs across Montgomery County and six surrounding Pennsylvania counties.

Once the developments reach stabilized operation, the analysis projects approximately 717 direct permanent positions. Including indirect and induced employment, it estimates approximately 1,527 recurring jobs in Montgomery County and approximately 1,834 across the seven-county region.

These employment figures are economic-modeling estimates. The indirect and induced positions would not necessarily be jobs located at the data center properties themselves.

The analysis considers five groups of proposed developments:

Together, the proposed developments are modeled at approximately 5.08 million square feet with the capacity to support as much as 1,230 megawatts of information-technology load.

The report assumes construction would occur between September 2026 and October 2029, with stabilized operations beginning by 2030. Those dates are projections rather than approved construction schedules.

The analysis presents the projected economic and fiscal effects of the proposed developments based on the assumptions and methodology described in the report. Upper Merion Area Spotlight is providing the complete document so readers can review the source material themselves.

Two public meetings related to the proposed data centers are scheduled for tonight and tomorrow:

Meeting agendas and participation details are available through the Upper Merion Township Agenda Center.

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Thank you for reading,

Corey