In Hazle Township, Pennsylvania, a clash over the expansion of AI data centers has taken an extraordinary turn.

When NorthPoint Development proposed a 1,300-acre project in the Pocono foothills designed to host 15 data center buildings, it was met with fierce local resistance to the construction, but NorthPoint had an idea. In an exclusive report by the Wall Street Journal, it was found that the developer mailed letters offering $10,000 to each of the roughly 4,500 households in Hazle Township. The payout, totaling $45 million, came with an obvious caveat: the checks would only be issued if the township approved the necessary zoning changes to allow the facility to be built. On top of the resident payouts, the developer dangled municipal funding packages to sweeten the pot for local leaders.

However, the proposal ignited immediate outrage and many residents openly condemned the offer as an outright bribe intended to divide the community and bypass typical environmental scrutiny. Skeptics pointed out that $10,000 pales in comparison to the potential long-term financial consequences, particularly the risk of decreased residential property values once the data centers are completed.

NorthPoint plans 1,300-acre data center campus in PA - Image: Google Maps

Nearby homeowners also worry that the tremendous energy and water demand (for running/cooling the servers) will strain the power grid, pushing up utility bills and depleting regional water resources. There was also the fear of constant noise pollution. Industrial cooling systems generate a continuous low-frequency hum, something that has already sparked lawsuits from residents living near data centers in Michigan and Wisconsin.

Furthermore, some argue that accepting the money could lock residents into restrictive agreements, thus waiving their rights to lodge future complaints or sue over environmental degradation. In response to the locals, the Hazle Township municipality rejected the developer's requests for zoning changes. NorthPoint Development has since filed a lawsuit aiming to overturn the town's decision, moving the battle from town hall to the court system. 

NorthPoint Development is one of the country's top large-scale industrial developers and commercial real estate operating companies. Among some of its clients are Amazon, General Motors, Boeing, and Walmart.