Data Center Development Creates Wealth for Pennsylvania Landowners Amidst New State Regulations
Some landowners in Salem Township, Pennsylvania, have become millionaires by selling their property to data center developers, despite general public opposition to data centers. Meanwhile, Pennsylvania has recently enacted stricter regulations on data center development, responding to community concerns.
In Salem Township, Pennsylvania, several landowners have experienced significant financial gains by selling their properties to data center developers. Michael Hodgson, a construction worker, sold his 14-acre property for millions, allowing him to retire, calling it "like winning the lottery." This sentiment is echoed by nearly 100 families in Salem Township who collectively sold over 1,700 acres for a total of $586 million.
Jack Sordoni, a local land developer, facilitated these sales, emphasizing that the deals include "community benefits agreements" aimed at improving local services such as fire, police, emergency, medical, water, sewer, and education. He also noted that 80% of the families who sold their land plan to remain in the area, providing an economic boost. The Kiliti family, who sold their 89-acre farm for over $20 million, is building a new home locally, and their daughter is reopening a shuttered brewery.
Despite these local benefits, a recent Gallup poll indicates that over 70% of Americans oppose data center development in their areas due to concerns about noise, environmental impact, and strain on local communities. Responding to such concerns, Pennsylvania Governor Josh Shapiro issued an executive order in August, imposing what he described as some of the country's strictest rules on data centers, shifting from his previous stance as a champion of such projects. Governor Shapiro indicated a willingness to engage with developers on serious proposals that have local community support, protect the environment, and generate power, under these new stringent requirements.