Project Hazlenut developer anounces $165 million community benefits package proposal

The developer of the planned Project Hazelnut data center complex in Hazle Township announced a $165 million community benefits package that would include paying $10,000 to every eligible household in the township upon issuance of the occupancy certificate for its first data center building.

Residents could use these funds at their discretion for home improvements, energy upgrades such as solar installation, landscaping, or other household priorities, NorthPoint Development said in the public announcement.

The 15-building data center project is proposed on a 1,280-acre site near Interstate 81. It’s still unclear if the developer will secure necessary township approvals to proceed.

The “resident grant fund” totaling $45 million is part of a revised $165 million community benefits package that NorthPoint describes as “historic” and “landmark.”

Some citizens opposing the project on the Stop Hazle/Sugarloaf Data Center Facebook page were critical of the package, with one characterizing it as “bribery.”

In May, the Kansas City, Missouri-based NorthPoint had announced the creation of a $30 million fund that would provide direct financial support to “help offset potential short-term localized utility rate increases” for township residential customers and pay for “other community-directed initiatives.”

It said the new $165 million package includes “unprecedented” direct resident grants, long-term township investment, and strict environmental commitments that set “a new benchmark for responsible data center development in Pennsylvania.”

“The revised proposal results from input from residents, community stakeholders, and others — and directly incorporates the feedback that shaped those conversations into binding financial commitments that will benefit Hazle Township families for generations,” it said.

This package also aligns the project with the newly announced Governor’s Responsible Infrastructure Development (GRID) standards, the announcement said.

Brian Stahl, NorthPoint’s executive vice president of development, said in the announcement the $165 million community benefits commitment is “the most direct, resident-first investment we have ever made.”

“It provides funding and the groundwork to provide additional services this community deserves, and ensures this project continues to be held accountable to the high standards the commonwealth has set,” Stahl said in the announcement. “We are proud to build here, and we intend to earn the trust of this community every single day.”

In addition to the $45 million resident grant fund, it includes:

• A $15 million fund to provide grants that support community-directed initiatives benefiting township residents, such as workforce development, educational training, arts and recreation projects, and youth programs.

• $105 million in funding for the township, provided on a schedule of $7 million annually over 15 years, to support “transformational community priorities,” such as the establishment of a township police force and reduction in residential trash collection fees.

Among the examples NorthPoint cited as evidence the project would meet state standards for responsible data center development:

• The necessary power capacity has been secured for the project. Long-term service commitments, minimum demand guarantees, and financial protections with PPL Electric Utilities will ensure the project pays the cost of any transmission upgrades required to serve the project.

• NorthPoint will continue to hold public information sessions, provide clear and accessible project documentation, and “engage constructively” to address community concerns throughout the development process.

• The project would use “zero local drinking water” for cooling purposes and rely solely on reclaimed wastewater.

• For every acre cleared, NorthPoint would conserve two acres, permanently protecting more than 1,100 acres of local forest and open space.

• Sound at the property line would not exceed household dishwasher-level decibels.

• All exterior lighting would be dark-sky compliant and directed downward.

• More than 1,300 construction jobs over the six-year development period and more than 900 permanent operational positions would be created.

The Stop Hazle/Sugarloaf Data Center Facebook page posted a copy of a letter NorthPoint sent to citizens that included these points.

This letter also stated the closest data center building would be more than 750 feet from any residential parcel and more than 1,500 feet from the closest house. “That is more than two and a half football fields away from any future neighbor,” it said.

It invites residents to follow the project at ProjectHazelnut.com and said an open house will be announced in the coming weeks to directly answer residents’ questions and discuss plans.