A major developer has reportedly offered every family in a rural Pennsylvania town $10,000 to build a data center.

According to The Wall Street Journal, the developer sent letters to 4,500 households about the proposed payments to let NorthPoint Development build the data center.

The firm is seeking approvals to construct the first of 15 buildings on 1,300 acres in the Pocono foothills.

In total, the proposed payments to residents would be $45 million.

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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.

Hyperscale data centers have faced immense backlash from Americans across the country, with many local municipalities taking action against future developments.

According to Gizmodo, Hazle Township supervisors approved a 180-day moratorium on data center construction so the community can update its zoning laws.

Gizmodo shared further:

The issue is proving to be a thorn in the AI industry’s side. Some Wall Street investors have been voicing concerns that the AI industry won’t be able to stick to growth targets amidst the growing data center backlash, according to a recent New York Times report. That fear is reportedly worsened by delayed IPO projections from data center developers like SB Energy, which is helming OpenAI’s major data center project in Ohio.

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While some developers, like NorthPoint Development, hope to find the solution to their problem in payouts, others in the AI industry are going on offense. According to an Axios report from Monday, private equity firm Blackstone and AI giant OpenAI are among the organizations backing a new group called the American Infrastructure Alliance, which will partner with local politicians to create standards for data centers, hoping to ward off future moratoriums. The group will reportedly begin campaigns next year in Texas, Georgia, Ohio, Iowa, Indiana, South Carolina, and Pennsylvania.

 

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