A big developer that’s desperate to build a data center near a Pennsylvania town has reportedly offered to pay every family there $10,000 – but most are still pushing back, part of a nationwide trend of opposition to such sites.
While seeking approvals for a data center project in the Pocono foothills, Northpoint Development sent letters to the 10,460 residents of nearby Hazle Township this summer, offering to write a check to each household to spend on “whatever you want.”
Totaling $45 million, the payouts would be a substantial boost for many residents of the town, where the average household income is $60,000. They could use it to cover six months of rent in a two-bedroom apartment or fund their groceries or gas for many months longer, according to the Wall Street Journal.
But many of the Pennsylvanians are rejecting the payments, skeptical the developer is trying to bribe them into signing off on a data center that could cause noise and light pollution, or simply help the acceleration of AI, which they fear could eradicate broad swaths of jobs.
Jeff Fasnacht, a retired teacher who lives near the planned location of the new data center, shared the same concern as many other residents around the country protesting data center buildouts – a new form of NIMBYism.
“$10,000 doesn’t match how much it’s going to tank my property value,” Fasnacht told the Wall Street Journal, while enjoying a Scotch and a cigar after a round of golf.
Ed Negra, a retired homeowner, added that the developer’s offer might end up backfiring since it could prompt residents to probe the potential downsides of the data center.
“I think it works the opposite way, because most people have the opinion that, ‘Hey, are they trying to bribe us here?’” he was quoted as saying.
Opposition to data centers has grown so strong that people would rather see a nuclear power plant built in their neighborhood than a data center, according to a Gallup poll in May.
Developers have gone to new lengths in an attempt to win over wary homeowners, offering tens of millions of dollars in funding for local schools, fire departments and other services.
At the local Italian festival in Hazle Township, residents spied “Free Amusement Rides Sponsored By Northpoint,” according to the Journal.
Direct cash payments to residents could mark the boldest attempt to win over public opinion to date – though politicians on both ends of the political spectrum have grown more resistant to data centers, eager to please their constituents as they seek re-election.
Texas Gov. Greg Abbott, a Republican, has ordered a pause on data center approvals, while New York Gov. Kathy Hochul, a Democrat, issued a first-of-its-kind moratorium on large-scale data center construction.
Pennsylvania’s Democratic Gov. Josh Shapiro signed an executive order banning nondisclosure agreements between local governments and data center companies, taking a stand against what he called “predatory” developers.
John Zola, who lives near Hazle Township in the town of Sugarloaf, said he thinks local politicians across the state are too easily won over by big-time developers – and then “the gates open, and then the municipalities provide 10-year tax abatements.”
NorthPoint’s chief marketing officer Brent Miles said the idea for the $10,000 checks came after a public meeting last year in which outraged residents pressed the company on what they had to gain from the data center.
“I think we’ve got something here that’s on the cutting edge, really in direct response to ‘what’s in it for me?’” he told the Journal.
The company also plans to make another $120 million in payments to support the town over the next 15 years, including money for a local police department, he said.
Charlie Leshko, a retired maintenance and janitorial worker living in a seniors residence, told the Journal he was considering the payouts, which could help him fund a new car or a down payment on a house.
“$10,000 don’t come along every day,” he said. “I always wanted to have my own house.”
Carl Majusiak, a retired foundry worker, said he also initially considered the checks – but decided it’s not enough to make up for the development.
“At first it seems like ‘well, OK, maybe I’ll think about it,” he said – but he eventually decided “we don’t need that around here.”
NorthPoint Development did not immediately respond to The Post’s request for comment.