Data Centers Spur Economic Opportunity Amid Local Concerns

While the U.S. witnesses a surge in the construction of data centers, the development faces notable opposition. Despite reservations, some landowners have capitalized on the boom, turning into millionaires through land sales. A recent Gallup poll reveals that over 70% of Americans oppose having data centers nearby, worried about noise, environmental effects, and pressure on local resources.

Michael Hodgson, a resident of Salem Township, Pennsylvania, saw selling his land for a data center as a windfall. Hodgson, 38, had settled in the small community of 4,000 people in 2019. He initially viewed his future as a construction worker without major financial prospects. However, a lucrative offer for his 14-acre property allowed him to retire, multiplying his initial investment nearly 60 times.

“It’s easy to look from the outside and say ‘Oh, these guys are sellouts,’ but, who wouldn’t jump at the opportunity to create generational wealth?” Hodgson shared.

Hodgson’s experience is part of a larger trend. Almost 100 families in Salem Township sold over 1,700 acres to a data center developer. Offers ranged from $1 million to upwards of $35 million, with a total of $586 million spent on the land — pricing each acre at over $300,000. Just two years prior, land value in the area was under $5,000 per acre. This prompted a “gold rush,” according to Jack Sordoni, a local land developer.

“We’re tired of things leaving Salem Township,” Sordoni expressed, adding that the transaction includes community benefit agreements worth millions, aimed at enhancing fire, police, emergency, medical, water, sewer, and educational services. Plans for further expansion may aid over 200 additional families.

Moreover, 80% of selling families intend to remain nearby, further benefiting local economy. The Kiliti family, for example, supports their community with their newfound wealth. David and Marilee Kiliti, who had managed an 89-acre farm through multiple jobs, gained over $20 million. They are establishing their dream home in Salem Township while their daughter revives a local brewery.

“For years, the town’s been run down. This helps a lot of people, not just the ones receiving money,” David Kiliti commented.

Data centers store necessary technology that manages diverse operations, including email and software processes. With the rise of AI, demand for such infrastructure is high.

Statewide, not everyone favors data centers. Recently, Pennsylvania adopted some of the nation’s toughest regulations for these projects. Governor Josh Shapiro, who once supported such development, explained the shift in August. Community feedback prompted stricter guidelines.

“I listened to local concerns,” Shapiro said. “I don’t want projects that locals reject in their neighborhoods.” He emphasized openness to proposals aligned with community interests and environmental safeguards.