Pennsylvania AI Data Centre Firm Offers Eligible Households $10,000 if Project Opens, Some Call It a 'Bribe'

NorthPoint Development has offered eligible households in Hazle Township, Pennsylvania, $10,000 (£7,438) each if its proposed AI data centre is built, as it challenges a court ruling against the project. Some residents have described the offer as a 'bribe'.

The proposed payment forms part of a $165 million (£122.73 million) community benefits package announced as NorthPoint seeks to revive Project Hazelnut, a planned 1,300-acre (526-hectare) development in Luzerne County. Amazon Web Services was subsequently identified as the intended end user.

Data Centre Cash Offer Follows NorthPoint's Court Defeat

The developer's package includes funding for a new local police department alongside the proposed household payments. It followed a Luzerne County court ruling that upheld Hazle Township's denial of land development approval, despite more than a dozen state permits already being issued.

NorthPoint has appealed to the Commonwealth Court. Its effort to build support has included events with the Chamber of Commerce and Rotary Club.

Ashley Bahrt, a Hazleton-area resident who opposed the development, became involved after seeing woodland cleared at the site. She attended township meetings and submitted public-records requests before raising what she believed was a breach of local zoning rules.

Bahrt argued that the financial offer did not address the development's size or environmental effects. She accused developers of trying to 'bulldoze [their] way in' rather than changing their plans.

Data Centre Dispute Tests Local Planning Powers

Project Hazelnut had previously featured in Governor Josh Shapiro's PA Permit Fast Track programme, introduced in November 2024 to accelerate state approvals. Opponents questioned whether residents had sufficient opportunity to scrutinise the project.

Hazle Township subsequently imposed a temporary moratorium on data centre proposals, due to expire in December 2026. The appeal leaves the project's future unresolved.

Similar tensions emerged in Upper Burrell Township, where supervisors approved TECfusions' land development plan in August despite opposition. Residents and the environmental group Protect PT appealed, alleging violations of local zoning requirements.

Those conflicts contrast with the construction industry's enthusiasm. Jim Enders, president of the Central Pennsylvania Building & Construction Trades Council, described unusually strong demand for workers, although he acknowledged that construction jobs decline once facilities become operational.

Pennsylvania Data Centre Tax Break Faces Pressure

Pennsylvania exempts qualifying data centres from a 6% sales and use tax on computer equipment. A February 2026 Department of Revenue estimate put the potential revenue loss at nearly $1.9 billion (£1.41 billion) across seven fiscal years beginning in 2024–25. At the time, 12 companies held exemptions, compared with 16 certified facilities now. The department stated that it cannot directly track the losses.

Shapiro, who declared Pennsylvania 'all in on AI' in 2025, has since tightened conditions for public support. His GRID standards require developers seeking state backing to cover the cost of new electricity infrastructure, engage with local communities, hire local workers and meet stricter environmental requirements. An August order linked compliance with those standards to the tax exemption.

His spokesperson, Rosie Lapowsky, told the News Lab that developers seeking tax exemptions 'have to meet the strictest requirements in the nation and have the support of the local community.'

Democratic representative Greg Vitali proposed repealing the equipment exemption. His bill passed the state House but stalled in a Senate committee, leaving Pennsylvania's tax incentive in place.