AI Data Center Boom Is Creating Millionaires In Rural Pennsylvania
Nearly 100 families in Salem Township, Pennsylvania, sold 1,700 acres of land for a new data center to QTS, an arm of Blackstone, for $586 million. This massive sale has created numerous local millionaires and is expected to bring significant economic benefits and jobs to the rural community. The development occurs as Governor Josh Shapiro has issued an executive order imposing strict guardrails on data center developers in the state.
A significant land sale in rural Salem Township, Pennsylvania, has led to nearly 100 families becoming millionaires through the sale of 1,700 acres to data center developer QTS, a subsidiary of investment firm Blackstone. The total sale amounted to $586 million, with families earning an average of $5.5 million, a drastic increase from the land's previous valuation of less than $5,000 per acre just two years prior.
Local land developer Jack Sordoni highlighted that the deal includes substantial community benefits agreements, dedicating millions of dollars towards enhancing fire, police, emergency, medical, water, sewer, and education services in the 4,000-person community. The project is also projected to generate 50 permanent jobs for each of its 12 planned buildings and over 1,500 construction jobs, with about 80% of selling families planning to remain local, providing further economic stimulus. Marilee and David Kiliti, who sold their unprofitable 89-acre farm, expressed that the sale would benefit the entire town.
This development comes amidst growing national concerns about data centers, with a May Gallup poll indicating that over 70% of Americans do not want them in their communities due to worries about water and energy consumption, and noise pollution. In response, Pennsylvania Governor Josh Shapiro issued an executive order in August imposing some of the country's strictest regulations on data center developers, following a $20 billion investment from Amazon for two data centers in the state last year. Governor Shapiro emphasized his administration's commitment to working with developers who prioritize community interests, stating, "We want to work with people that want to work with local communities."
Another substantial land transaction is reportedly in progress, potentially involving 200 more landowners and valued at $1.3 billion.