Data center opponent decries Hazelnut sewer deal

John Zola, a former member of the Greater Hazleton Joint Sewer Authority (GHJSA), is spearheading opposition against an agreement for the authority to sell treated sewage to NorthPoint, a developer for the proposed Project Hazelnut data center in Hazle and Sugarloaf Townships, Pennsylvania. Zola contends that the sale of effluent, which is a product paid for by ratepayers, should not proceed without direct benefit to those ratepayers, suggesting a profit-sharing mechanism. NorthPoint, based in Kansas City, Missouri, with its subsidiary NP Hazleton Holdings 1 LLC, has proposed paying $10 per 1,000 gallons for treated sewage to be used for cooling the data center, covering all connection costs to the GHJSA's West Hazleton treatment plant. Gregory Olander, GHJSA's director of administration, counters that these payments will offset expenses normally covered by rates, thus benefiting ratepayers. He also highlighted the environmental benefit of using reclaimed water for cooling to preserve potable water supplies. Although Zola initially voted in September 2024 to issue "Will Serve Letters" to NorthPoint, he claims he misunderstood the finality of the vote and has since resigned from the board to actively fight the project. He cites concerns about potential aquifer depletion and land subsidence from the data center's water demands, noting that the project will also require a 500-kilovolt power line across his property. The Project Hazelnut, which Zola also attributes to LBT Investment Group LLC of Chicago, is expected to use varying amounts of cooling water, potentially up to 2.8 million gallons a day during peak summer heat, generating significant revenue for the authority. Zola is urging the authority to withdraw from the agreement.