A significant investment is underway in Hazleton, Pennsylvania, as NorthPoint Development commits approximately $23 million to acquire land for what will become the largest data center in the region. The company, based in Kansas City, Missouri, plans to construct a data center capable of consuming enough electricity to power 90,000 homes, marking a pivotal development in the area’s economic landscape.
NorthPoint has already established a 1-million-square-foot warehouse in the vicinity and intends to build a data center adjacent to the Eagle Rock Resort. This facility, known as Project Hazlenut, is projected to require 300 megawatts of electricity and will utilize treated wastewater for cooling purposes, consuming millions of gallons on peak days.
Local opposition has emerged concerning tax incentives granted to NorthPoint, with residents expressing concerns over the implications of high-voltage power lines needed to support the center. A town hall meeting is scheduled for Tuesday at 5:30 PM at Hazleton Area High School, hosted by three state lawmakers, to address community concerns.
Project Scope and Economic Impact
Since its inception, NorthPoint has expanded its reach significantly, developing industrial buildings across 27 states and operating 37 data centers in 18 states. In Pennsylvania, the company has acquired 16 properties, including notable sites for Chewy, DHL, and Wise Foods. The recent acquisition of land has been facilitated through two limited liability corporations, NP Hazleton Holdings 1 and NP Hazleton Holdings 2, which have purchased land totaling at least 1,583 acres in Hazle Township, representing 6.2% of the township’s area.
The data center is set to be constructed over 1,250 acres in Hazle Township, near the planned Tomhicken substation. Construction will occur in phases between 2026 and 2029, with a total of 15 buildings dedicated to data processing and four ancillary structures.
According to Governor Josh Shapiro, the overall technology park associated with NorthPoint is expected to generate 900 permanent jobs under the state’s Fast Track economic development program.
Power and Environmental Concerns
The energy demands of the proposed data center are significant, necessitating a substantial power supply. NorthPoint’s data center will be electrified via a 500-kilovolt line, which will require the construction of a new switchyard and substation. This infrastructure will be fed by a high-voltage line extending approximately 12 miles from a nuclear power plant in Salem Township.
Concerns regarding the power line have led to grassroots opposition, with petitions circulating among residents who fear potential impacts on their properties and the environment. Public meetings have been attended by concerned citizens, leading local councils to express opposition to the proposed line.
In addition to power supply issues, NorthPoint plans to utilize treated wastewater from the Greater Hazleton Joint Sewer Authority for cooling operations. The company will pay the authority $10 per 1,000 gallons of treated water, with summer demand potentially reaching 2.8 million gallons daily. This initiative is designed to meet cooling needs while adhering to environmental standards.
As NorthPoint navigates these challenges, it remains committed to developing the data center on previously mined land, aligning with the objectives of the Local Economic Revitalization Tax Assistance (LERTA) program aimed at revitalizing blighted properties. The company has indicated that it will maintain a buffer zone from residential areas, addressing some community concerns about proximity.
The construction of Project Hazlenut is poised to have a transformative effect on the local economy, but the interplay between development and community concerns continues to evolve as the project progresses.
