Keel Wins Zoning Approval for AI Data Center Expansion at Former Bitcoin Mine

The zoning board in Sharon, Pennsylvania, has approved a proposal by Keel Infrastructure (NASDAQ: KEEL) to expand a data center on a former industrial site, advancing a project that reflects the broader conversion of legacy bitcoin mining facilities into AI-oriented infrastructure.

The plan centers on a multi-billion-dollar expansion along Clark Street, where Keel is developing what is expected to become a 110-megawatt campus on roughly 18 acres of brownfield land. The site previously housed a Westinghouse Electric plant and more recently operated as a bitcoin mining facility before being repurposed for data center use.

The zoning approval, granted Monday and reported by local news outlet WKBN, comes with several conditions aimed at addressing local concerns. These include a 70-decibel noise cap and a restriction preventing the facility from drawing water from a nearby river. Instead, the project will rely on a closed-loop cooling system designed to use significantly less water than traditional data centers.

Residents in the surrounding neighborhood have voiced concerns about potential impacts, including noise, electricity costs and water usage. One nearby resident, speaking to local media, said she had heard the facility could create “a lot of humming noise” and increase utility bills.

City officials acknowledged those concerns during the review process. Sharon City Manager Bob Fiscus said the zoning board weighed public feedback while noting that data centers are permitted within the city’s manufacturing district.

“I think people are scared… when it is the unknown,” Fiscus said, adding that officials wanted to ensure community concerns were heard as part of the decision-making process.

Executives of Keel, which rebranded from Bitfarms earlier this month, have framed the project as both an infrastructure upgrade and a redevelopment effort. Chief Operating Officer Liam Wilson described the site as a “state-of-the-art facility” that would revitalize underutilized land and bring economic activity back to the area.

The approval does not mark the final step. The proposal must still pass reviews by the Mercer County Regional Planning Commission, the Sharon Planning Commission, and ultimately the city council before construction can begin. If fully approved, the company expects to start building and hiring later this year.