Project Hazelnut developer offers $30 million electric bill relief
NorthPoint Development offered $30 million in electric bill relief and other incentives to gain support for its proposed Project Hazelnut data center in Hazle Twp., Pennsylvania. This initiative comes as the company is appealing a decision by Hazle Twp. supervisors who deemed the data center not permitted under current zoning, amidst ongoing local opposition and legal challenges.
NorthPoint Development of Kansas City, Missouri, is offering a $30 million fund to subsidize electric bills for residents in Hazle Township, Pennsylvania, as part of an effort to gain support for its proposed Project Hazelnut data center. The company, which issued a news release on May 19, states this initiative aims to provide immediate and long-term community support, create jobs, and ensure the project acts as a responsible and sustainable partner. The fund is specifically designed to offset potential short-term localized utility rate increases for residential customers within the township.
This offer comes amid a legal dispute, as Hazle Township Supervisors declined to comment, citing ongoing litigation. NorthPoint Development appealed to Luzerne County Court after the supervisors decided on November 14 that the 15-building Project Hazelnut data center was not permitted on the 1,306-acre site. The supervisors argued that data centers are not explicitly mentioned in the zoning ordinance, requiring a special exception approval from the zoning board, which they considered the more appropriate body to address the hundreds of residents who opposed the project at a November 10 meeting.
Opposition extends beyond Hazle Township, with residents like John Zola of Sugarloaf Township expressing concern that NorthPoint's utility relief offer excludes those along the route of a proposed 11.2-mile, 500-kilovolt high-voltage line, which traverses Nescopeck, Black Creek, Sugarloaf, and Hazle townships. PPL Electric Utilities, which owns a right-of-way along this route, is reportedly pursuing condemnation proceedings against approximately 30 property owners who have rejected easement offers. Erika Cook, another property owner who declined PPL's offer, highlighted that nearby property owners not within the immediate right-of-way have received no offers.
In addition to the financial incentives, NorthPoint Development has committed to working with energy providers to ensure the project is a "net-positive contributor to regional electric stability." The company also plans to collaborate with local colleges, schools, and unions for workforce training. Furthermore, NorthPoint reiterated its commitment to water conservation, stating that Project Hazelnut would use treated sewage for cooling, rather than drinking water, with an estimated maximum usage of 2.8 million gallons per day on the ten hottest days of the year.