Residents Reject Data Centre, Turn Down Rp154 Million Per Household
Jakarta, CNBC Indonesia — Residents of Hazle Township, Pennsylvania, in the United States, were offered an attractive deal: each household was promised US$10,000, or about Rp154 million, if they agreed to the construction of a huge data-centre facility in the area.
Nevertheless, local residents unanimously chose to reject the offer. Project Hazelnut, being developed by NorthPoint Development, plans to build a data-centre complex covering more than 1,300 hectares.
To advance the construction plan, the developer had set out a series of major commitments. These included a cash incentive of Rp154 million per household, Rp231 billion for community needs such as education and public facilities, more than 2,000 jobs, and a pledge to preserve 1,100 hectares of forest.
Although nearly 17% of residents live below the poverty line, the offer was rejected. Many residents described it as resembling a bribe.
“That money is a drop in the ocean compared with the losses we will suffer,” said Ed Negra, a resident who also owns a small business. “Our property values will plummet. If this isn’t a bribe, I don’t know what is.”
Another resident, Brian Malloy, added: “We are not selling our home environment.”
The opposition is not without reason. In the nearby small town of Archbald, plans for six data-centre campuses have provoked residents’ anger. The facilities would occupy up to 14% of the town, drain electricity supplies, push up energy bills and generate noise around the clock.
The town council that approved the plans was subsequently voted out by residents.
Hazle Township residents fear that the enormous demand for electricity will raise bills for everyone, while cooling systems running 24 hours a day will create constant noise. They are also concerned that water used for cooling could affect local supplies and that property prices could plunge because of the proximity to industrial activity.
Residents’ concerns have intensified because the approval process is being accelerated. Pennsylvania Governor Josh Shapiro placed the project in a fast-track programme, shortening the time required to secure permits.
Community opposition in various locations is now a real risk for technology giants. According to a Reuters report, 75 data-centre projects faced organised local opposition in the first quarter of 2026 alone. The total investment at risk amounts to US$130 billion, or about Rp2,000 trillion.
Investors are beginning to realise that building AI infrastructure is not just about electricity and cables. It also requires local consent—and money cannot always buy it.