Data Center Developer Offers $10,000 Checks To Nearby Households

NorthPoint Development is attempting to construct a data center on 1,300 acres in the Pocono foothills near Hazle Township, Pennsylvania. In addition to seeking to impress local authorities with various financing options, the company has proposed paying out $10,000 per household. However, the offer has not been met with enthusiasm from the local community, as reported by the Wall Street Journal.

Interviewed residents were largely opposed to the data center development plans, citing several concerns. The primary issues revolved around potential effects on property values, the possibility of noise pollution, and a lack of trust in both the AI companies and local government representatives. Letters offering the $10,000 began being sent out to Hazle Township residents in June.

When the Journal recently spoke with some locals, only a few residents expressed eagerness to welcome the data center in exchange for the payment, according to the Journal. In the past, developers typically offered towns and cities financing packages worth tens of millions, including support for local services. However, the Journal notes that direct cash payments to residents are a novel approach in their attempt to win over communities.

The idea to offer residents direct payments may have originated after a contentious public meeting last year, where residents questioned what they stood to gain from supporting the data center. While the $10,000 payout is not enough to sway many locals, they also receive up to $120 million in funding over the next 15 years, which could be invested in community and local services.

Hazle Township's government had previously rejected the data center project on zoning grounds and has imposed a temporary moratorium on data center construction. The Journal suggests that the $10,000 offer to individual households may be perceived as a bribe or insult by many residents.