Luzerne County real estate tax break requested for 15-building data center in Hazle Township

NorthPoint Development is seeking a Luzerne County real estate tax break for a 15-building data center on a 1,280-acre site in Hazle Township.

Data centers are increasingly in demand to house computing and networking equipment that stores and churns out information for businesses.

County council’s infrastructure committee discussed the request Tuesday as part of vetting before it is presented to the full 11-member council for discussion and a vote.

Called “Hazelnut,” the property slated for a data center is near the Humboldt Industrial Park’s north zone and would be primary accessed by an extension from North Park Drive, which is located off state Route 924 close to Interstate 81.

The break would be under the Local Economic Revitalization Tax Assistance (LERTA) program for blighted properties, which means the property owner pays real estate taxes on the land throughout the break and receives a discount on taxes for the new development. A break already was approved for township and Hazleton Area School District taxes.

During the initial presentation last month, the Kansas City, Missouri-based NorthPoint proposed a percentage schedule of reductions over a decade and also offered to provide an estimated $1.18 million payments in lieu of taxes. County council members had praised a payment in lieu of taxes included in a tax break package they approved in August for Hillwood Properties’ project along Route 309, also in Hazle Township.

Originally NorthPoint sought full county real estate tax forgiveness the first seven years, 90% in the eighth year, 80% in the ninth and 70% in the tenth.

Its revised proposal presented Tuesday would alter the forgiveness to 90% the first seven years, followed by 80%, 70% and then 60% the final three years.

NorthPoint kept the payment in lieu of taxes in the revised proposal. It would provide the county with $2,500 for each acre housing a structure — half to be paid when each building permit is issued and the remainder when the temporary certificate of occupancy is issued.

Construction will be completed in phases. NorthPoint estimated the following building permit issuance dates, acreage and payments in lieu of taxes in each phase:

• Jan. 31, 2026; 211.65 acres; $529,125.

• July 1, 2026; 97.54 acres; $243,850.

• Jan. 1, 2027; 164.26 acres; $410,650.

Infrastructure committee members Jimmy Sabatino (chairman), Harry Haas (vice chairman) and Patty Krushnowski asked numerous questions during both presentations, including inquiries about the types of jobs created and how the data center’s intensive cooling and energy demands would be met.

NorthPoint representatives Tom Williams and Brian Stahl collectively provided these responses:

The public water system will only be used for restrooms and other standard business uses.

Due to the climate in this area, NorthPoint expects an air-cooled system will suffice most of the time to minimize reliance on water for cooling. Because the public water system won’t be tapped for cooling, the developer is in discussions about accessing some “gray water” from the wastewater treatment plant on the opposite side of I-81 in West Hazleton.

NorthPoint said investments made at the new data center will help reinforce and strengthen the electric system for all utility customers, creating fewer power outages and disruptions.

If there are blackouts, diesel-powered generators would provide back-up power to the data center.

Asked about data center noise, the NorthPoint representatives said sound modeling concluded normal operations would be equivalent to a “dull conversation” or “whisper.”

Lighting would be directed inside the center campus and not outward so it will not impact neighboring communities, they said.

Because only a portion of the site will be occupied, natural features should help the center blend in.

The project is expected to create approximately 900 permanent jobs, including electrical engineering and information technology positions that should provide family-sustaining wages.

Infrastructure committee members voted Tuesday to advance the tax break request to council’s March 11 work session for discussion.