The Impact of Data Centers on Local Communities in Pennsylvania

The construction of data centers in the U.S. faces considerable opposition. However, some individuals have become millionaires by selling their land to developers. A recent Gallup poll showed that over 70% of Americans reject data centers in their areas due to concerns about noise, environmental damage, and strain on local communities.

Michael Hodgson, a 38-year-old construction worker from Salem Township, Pennsylvania, is an example. He felt like he won the lottery when offered millions for his 14-acre property. Originally purchased in 2019, his land was part of a rural community with around 4,000 people. The offer allowed him to retire, giving his family financial security.

Hodgson remarked, “It’s easy to criticize from the outside, but who wouldn’t seize an opportunity to create generational wealth?” His story is not unique. Nearly 100 families in Salem Township sold over 1,700 acres to a data center developer. They earned between $1 million and $35 million, with the developer spending $586 million in total, equaling over $300,000 per acre. This transformed the local real estate market, where land was previously valued at under $5,000 an acre.

A lot of folks felt stuck here, said Jack Sordoni, a land developer involved in organizing the sale. According to him, the data center boom created a gold rush. Tired of watching opportunities leave Salem Township, the sell-off included community benefits agreements. These agreements aim to improve public services and local infrastructure.

Sordoni revealed that another data center expansion could benefit 200 more families. About 80% of sellers plan to stay local, promising an economic uplift for the community.

David and Marilee Kiliti, who earned over $20 million for their 89-acre farm, remain in Salem Township. They plan to build their dream home and help their daughter reopen a local brewery, offering a boost to the town economy. Kiliti observed, “The town’s been in decline for years. This aids not just the sellers but the entire area.”

Data centers store drives and network servers that process digital traffic. The AI era has increased demand for these services. However, not everyone approves. Pennsylvania has implemented stringent rules on data centers. Governor Josh Shapiro, once an advocate, responded to residents’ worries. While supportive proposals that consider community needs and environmental protection are welcome, unbacked projects are discouraged.