In Sugarloaf Twp., a picturesque view from Doreen Cherenyock’s porch has been replaced with the sight of land cleared for the Humboldt Industrial Park. Her once serene landscape now faces an alteration due to the development of a new data center campus by NorthPoint Development in Hazle Twp.
Cherenyock, residing in southern Luzerne County, recalls a time when her property’s value was enhanced significantly by the expansive tree-lined view. “When we had our house appraised a few years back, we were told that the view adds about $35,000 to $40,000 to our home,” she lamented. “As you could see, it’s gone,” she added.
The NorthPoint project, known as Project Hazlenut, is an ambitious plan involving 15 buildings in the industrial park. Brian Stahl, NorthPoint’s executive vice president of strategic initiatives, emphasized the company’s dedication to addressing community concerns, stating, “We encourage residents with questions or issues to contact NorthPoint Development so we can address concerns promptly.”
The development has sparked opposition not only against the data center but also a proposed 500kV transmission line by PPL Electric Utilities. Residents suspect this line will power the industrial park, although PPL claims it was requested by multiple new customers and serves broader regional demand.
Energy Demands of Data Centers
Data centers are known for their considerable energy consumption. Companies like Google, Meta, Microsoft, and Amazon plan to spend $364 billion this year on new data centers across the U.S., according to Harvard Law Today. These facilities require a constant power supply, as emphasized by Nicole Luciano from the Energy Association of Pennsylvania: “These are entities that typically need 100% of their power, 100% of the time.”
PPL’s Shelby A. Linton-Keddie noted that the rise of AI technologies amplifies electricity needs: “What we hear anecdotally is that [AI] uses 10 times the amount [of energy as a regular Google search].”
Potential Impact on Power Rates
As data centers proliferate, community concerns grow about potential increases in electricity rates. The Harvard University report “Extracting Profits from the Public” discusses how utility rate structures might shift, raising questions about cost distribution among consumers.
Pennsylvania’s Public Utilities Commission (PUC) is actively monitoring these developments. Luciano explained that utility companies negotiate costs on a case-by-case basis, ensuring that data centers cover the costs of necessary infrastructure upgrades.
The Need for Grid Expansion
The proposed Sugarloaf Transmission line is designed to enhance regional power reliability. PPL spokesperson Dana Burns explained that the line would not directly connect to the industrial park but would enhance the overall power grid infrastructure.
The controversy over eminent domain has also arisen, with local residents like John Zola expressing concerns over the potential for land seizures. “Those words right there are terrifying,” Zola stated, emphasizing the impact on his property.
Community Response
The situation has galvanized community action, with groups like the Alliance to Stop the Line emerging in response to the developments. Residents demand greater transparency and consideration of the local impact, advocating for strategic placement of such facilities away from residential areas.
Despite the challenges, community members remain hopeful for a resolution that respects both economic development and local quality of life. As Cherenyock notes, “I will never give up my hope that this will come to a good resolution, and the people with the money will realize their money isn’t going to buy them everything.”
