"$10,000 Per Household"…Bold Offer From Data Center Developer Faces Lukewarm Response From Residents

Developer Offers $10,000 to 4,500 Households

"Concerns Over Falling Home Values... Are They Trying to Buy Us Off?" Residents Push Back

As opposition from local residents intensified over the construction of an artificial intelligence (AI) data center, a U.S.-based developer has made a bold proposal: offering $10,000 per household (approximately 13.6 million won). However, a significant portion of residents have expressed a negative stance toward the data center's construction, even with the promise of cash compensation.

Hazel Township, Pennsylvania. Project Hazelnut Data Center Campus Website

According to the Wall Street Journal (WSJ) on September 27 local time, NorthPoint Development, a data center developer, began sending letters in June to all households in Hazel Township, Pennsylvania, offering $10,000 to each if they allow the data center to be constructed. The payment is conditional on approval of the data center.

NorthPoint plans to build a total of 15 data center buildings on a 1,300-acre (approximately 5.3 square kilometers) site at the foothills of the Pocono Mountains. If the first data center is built, about 4,500 households in the area will each receive $10,000. The total amount to be distributed would reach $45 million (about 6.1164 billion won).

The median household income in Hazel Township is around $60,000 (approximately 81.56 million won), so $10,000 is a significant sum. However, according to residents interviewed by WSJ, few people were enthusiastic about the data center project solely because of the promise of cash. Residents expressed concerns over noise and falling home values resulting from the construction and operation process, as well as the rapid expansion of the AI industry. Distrust of the development project itself and its operators was also cited as a reason for opposition.

Recently, data center developers have been offering financial support worth tens of millions of dollars to fire departments, emergency services, and schools to reduce local opposition. Direct cash payments to residents, however, are rare. WSJ assessed this as a new stage in the expansion of AI infrastructure.

One resident living near the planned site commented, "The $10,000 doesn't match the amount my home value might decrease by." Some other residents reacted to the developer’s offer by questioning whether the company was simply trying to buy their consent.

NorthPoint’s decision to propose direct cash payments was prompted by a community meeting held last year, where residents pressed for details on what benefits they would receive if the data center project moves ahead.

Project Hazelnut Data Center Campus Homepage

Brent Miles, Chief Marketing Officer at NorthPoint, explained that this proposal was a direct response to residents asking, “What’s in it for me?”

Separately from the direct cash payments to residents, NorthPoint also announced plans to invest $120 million (about 16.31 billion won) over the next 15 years for police department support and community development.

However, the future of the project remains uncertain. Hazel Township authorities rejected the development last November, citing zoning regulations. NorthPoint has filed a lawsuit seeking to overturn this decision.

Currently, Hazel Township has temporarily halted data center construction while it updates its zoning ordinances. Ed Negra, a resident participating in the opposition movement, said that the proposal to pay $10,000 per household could backfire, remarking, "Most people think, 'Aren’t they just trying to buy us off?'"

This content was produced with the assistance of AI translation services.