KEEL Infrastructure's (NASDAQ: KEEL) developer Quantm Group was granted land development approval on Tuesday by the Allentown Planning Commission for a data center in the county, per local reporting from WFMZ. Quantm Group plans to convert a vacant 224,000-square-foot warehouse in the city's General Industrial district and add an electrical substation and sound walls.
WFMZ put the project's size at 80 MW, while The Morning Call described it as 75 MW. In September, The Morning Call reported that KEEL would operate the facility and rent space to a technology company that had not been named.
Approval came with several conditions, including a limit on megawatt usage, restrictions on emergency generator operation, and rules covering air quality and emissions. The closed-loop cooling system will not use public water. The approved megawatt cap was not disclosed.
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Tony Maras, who represented Quantm, told planners that PPL has the electric capacity to serve the site. The facility would also carry more than 30 backup generators. Planner Erich Hornung said only the city's waste treatment plant draws comparable power.
"We have aging infrastructure, so I think it would be important to address that," Hornung per local reporting.
In response, Maras agreed to give city staff a report within 30 days on alternative energy, heat recovery and galvanic cells. Residents raised concerns about generator noise and on-site diesel storage. Camelot for Children, a daycare across the street, withdrew a zoning appeal shortly before the vote.
Commission chair Christian Brown defended the decision, according to The Morning Call. "Planning boards can deny things for the sake of denying things, but then it exposes municipalities to legal challenges," Brown said. Quantm has estimated the project would generate about $4 million in annual city revenue.
KEEL has outlined a 2.2 GW development pipeline across Pennsylvania, Washington and Québec. In the second quarter, its revenue from continuing legacy operations fell 50% to $30 million, and it posted a $64 million loss from continuing operations. KEEL reported about $819 million in liquidity as of August 7.
KEEL shares traded at $2.635 Wednesday morning, down 8.19%. That leaves the stock about 64% below its 52-week high of $7.37. Its 52-week low is $1.68.
