Meet the landowners who became millionaires from data centers
Landowners in Salem Township, Lar County, Pennsylvania, have become millionaires by selling over 1,700 acres to a data center developer for hundreds of millions of dollars. This development, while generating significant wealth and community benefits, also sparks pushback over noise, environmental concerns, and strain on local resources, prompting Governor Josh Shapiro to enact stricter state-level data center regulations.
In what residents are calling a "data center gold rush," communities in Northeast Pennsylvania, particularly Salem Township in Lar County, have seen numerous landowners become millionaires by selling their properties to data center developers. This year alone, nearly 100 families sold over 1,700 acres for a total of $586 million, with individual payouts ranging from $1 million to over $35 million. Many residents, like Michael Hansen, who sold his 14-acre property for 60 times its original purchase price, view this as a life-changing opportunity to create generational wealth, despite potential criticism.
However, this data center boom is also generating significant pushback due to concerns over noise, environmental impact, and the strain large developments place on local communities. Pennsylvania Governor Josh Shapiro, who previously supported AI infrastructure, recently responded to these community concerns by imposing some of the country's strictest data center regulations, indicating a shift in his approach after listening to constituents.
Despite the broader opposition, in Salem Township, the scale of the economic opportunity has created strong local support. Land developer Jack Sordoni, who organized the family sales, highlighted the dramatic increase in land value from under $5,000 to over $300,000 per acre. He noted that community benefit agreements, totaling millions of dollars, are set to improve local services like fire, police, emergency, medical, water, sewer, and education. Many families, including David and Maril Lee Khalidi who sold their 89-acre farm for over $20 million, plan to stay local, further boosting the economy, with some using their new wealth to invest in local businesses.
As another data center expansion deal is reportedly underway, poised to benefit over 200 additional families, the narrative highlights a complex trade-off. While concerns about environmental impact and community strain remain, the opportunity for generational wealth is a powerful draw for many, illustrating the dual impact of the industrial revolution-like growth in the data center sector.