Residents in Hazle Township, Pennsylvania, rejected a proposed Amazon Web Services data center known as Project Hazelnut, turning down direct cash offers of USD 10,000 per person from developer NorthPoint Development, detikInet reported.
Project Hazelnut Proposal and Community Resistance
NorthPoint Development introduced the USD 10,000 cash payment scheme to quell local opposition in Hazle Township, where nearly 17 percent of the population lives below the federal poverty line, according to PennLive. Despite the financial incentive, residents organized to oppose both the data center complex and the high-voltage power lines required to supply its energy. Mary Fox, executive director of the Pennsylvania Ethics Commission, stated that the payment scheme was an approach she had not encountered before. Residents rejected the money, characterizing it as hush money designed to push the development through.
It’s like bribery,
local resident Brian Malloy said, as cited by Futurism. Ed Negra, a homeowner and small business owner in the township, argued that the compensation did not reflect the potential financial damage to the community. Our property values will plummet drastically. If that’s not bribery, I don’t know what it is.
Negra said, asserting that property values would plummet if the project moved forward.
Wider US Data Center Protests and Financial Risks
The resistance in Pennsylvania reflects a broader national backlash against the rapid expansion of digital infrastructure. Reuters reported via Data Center Watch that 75 data center projects across the United States faced public protests during the first three months of 2026, representing $130 billion in planned investments. These community disputes introduce significant financial and social risks for private equity firms and major banks backing the sector. Karen Fang, global head of infrastructure and sustainable finance at Bank of America, noted that her institution examines project readiness and community support alongside credit quality before funding infrastructure ventures.
🇺🇸UPDATE: Residents of Hazle Township, Pennsylvania refused a $10,000 cash payment per household offered by NorthPoint Development to support a massive Amazon Web Services data center project.Locals called the offer outright bribery and warned the facility would tank property… https://t.co/xSfjmeU0Sh pic.twitter.com/gcRTHeAFzE
Regulatory Responses and State-Level Acceleration
State and local authorities are split between managing public pushback and accommodating surging demand for artificial intelligence computing power. In Pennsylvania, Josh Shapiro used an executive order to accelerate the process for developers in establishing data center facilities across Pennsylvania, running counter to the grassroots resistance in Hazle Township. Simultaneously, municipalities across the United States enacted more than 300 local moratoriums on data center construction. However, an analysis by SemiAnalysis published in The Economist indicated that these pauses would cause limited delays, projecting that 38 gigawatts of US data center IT capacity will come online by 2027.
Frequently Asked Questions
Why did Hazle Township residents reject the developer’s cash offer?
Residents turned down the USD 10,000 per person payout because they believe the facility will drastically reduce local property values and view the money as an inadequate attempt to bypass community opposition.
How many data center projects faced community protests in early 2026?
Data Center Watch recorded public opposition to 75 data center projects representing $130 billion in investments across the United States during the first three months of 2026, according to Reuters.
What is Governor Josh Shapiro’s stance on data center development in Pennsylvania?
Josh Shapiro used an executive order to accelerate the process for developers in establishing data center facilities throughout Pennsylvania, supporting rapid industry expansion despite local protests.
What capacity do analysts project for US data centers by 2027?
SemiAnalysis projects that 38 gigawatts of data center IT capacity will become operational across the United States by 2027, driven largely by demand for artificial intelligence infrastructure.