Residents of a Pennsylvania township remain opposed to a massive data center despite a developer’s offer of $10,000 per eligible household, highlighting the difficulty tech giants face in winning local approval for new computing facilities.

NorthPoint Development is offering a $165 million community benefits package to win support for Project Hazelnut, a proposed hyperscale data center campus linked to Amazon Web Services. The developer scheduled a community meeting to discuss the project, which remains unresolved as Hazle Township officials consider new zoning regulations.

The opposition is notable given that about 17% of township residents live below the federal poverty line. Yet many residents argue that the payments would not compensate for potential declines in property values, higher electricity costs and environmental damage.

The proposed campus would occupy approximately 1,100 to 1,300 acres, with plans for 15 data center buildings, four supporting structures and extensive electrical infrastructure. NorthPoint has earmarked $45 million of its benefits package for direct household payments, contingent on the first building receiving a certificate of occupancy.

The project has faced opposition for more than a year. In November 2025, township supervisors rejected an earlier proposal, but the development remains under consideration as officials work on zoning rules governing data centers.

Payments Limited to Hazle

A major source of controversy is that the payments would be limited to Hazle Township households. Residents in neighboring Hazleton and Sugarloaf Township would receive nothing, despite their proximity to the proposed development and its supporting infrastructure.

The dispute extends to the Sugarloaf Transmission Project, a proposed 500-kilovolt power line that would require additional land and the removal of trees along its route.

PPL Electric Utilities says the transmission line is needed to meet regional electricity demand rather than serve one particular customer. But residents have questioned its relationship to Project Hazelnut. The Pennsylvania Public Utility Commission has paused the transmission project’s first phase following public opposition.

Questions about AWS’s involvement have also complicated NorthPoint’s effort to gain community support. Public records obtained through information requests identified AWS as a prospective beneficiary of the project. Amazon acknowledged discussions with NorthPoint but said no final agreement had been reached. An Amazon spokesperson said that the company did not play a role in the creation or communication of the benefit program announced by NorthPoint.

The controversy has prompted changes in Pennsylvania’s approach to data center development. Governor Josh Shapiro removed AI data centers from the state’s Fast Track permitting program and introduced standards addressing infrastructure costs, water conservation, local employment and community engagement.

The opposition in Pennsylvania is part of a larger industry trend. According to research firm Data Center Watch, local resistance disrupted at least 75 data center projects representing approximately $130 billion in investment during the first quarter of 2026.

Hyperscalers are responding by changing how they engage with communities. Amazon has announced that it will stop using nondisclosure agreements with local officials concerning data center projects.

Google is taking a different approach in New Mexico’s Lea County, where it is seeking public feedback about a proposed facility before finalizing its plans. Yet residents have already organized opposition, citing concerns about electricity and water consumption.