Impact of Data Center Developments in Pennsylvania

The rise of data centers in the U.S. has sparked significant debate. While many Americans oppose their construction due to concerns over noise, environmental impact, and community strain, some see financial opportunities. A recent Gallup poll revealed that over 70% of Americans don’t want data centers nearby. Despite this, some landowners have seen immense financial benefit from selling their properties.

Michael Hodgson is one such individual who benefited financially. The 38-year-old construction worker from Salem Township, Pennsylvania, sold his 14-acre property, earning him nearly 60 times what he initially paid. For Hodgson, this unexpected fortune was akin to winning a lottery. He expressed that the sale provided him the means to retire and create generational wealth. “Who wouldn’t jump at the opportunity to create generational wealth?” he remarked, addressing potential critics.

Hodgson isn’t alone. In Salem Township, nearly 100 families sold over 1,700 acres to a data center developer, with sales ranging from $1 million to over $35 million. The developer invested $586 million in total, paying over $300,000 per acre, whereas the land value was less than $5,000 per acre two years ago.

Jack Sordoni, a land developer and Salem Township native, noted the situation as a “gold rush.” “We’re tired of watching things leave Salem Township,” he said, emphasizing the significant community benefit agreements included in the deal. These agreements aim to enhance services like fire, police, emergency, and medical services, as well as infrastructure and education.

Most families who sold their land plan to remain local, which, according to Sordoni, positively impacts the local economy. For instance, David and Marilee Kiliti, who sold their 89-acre farm for over $20 million, are building their dream home in Salem Township and revitalizing a local brewery.

However, not all residents are enthusiastic about the data center boom. Pennsylvania has adopted some of the nation’s strictest regulations on data centers. Governor Josh Shapiro voiced concerns after speaking with residents, stating, “I showed up in communities and heard the concerns of neighbors.” He underscored the importance of community and environmental protection when discussing potential projects.

Data centers are crucial in the modern era, processing vast amounts of data from emails to software applications. Despite their economic potential, local support and stringent regulations remain pivotal for their development in Pennsylvania.