Big data, small towns: Who pays? We do
As artificial intelligence is changing the way the world works, it’s creating a huge demand for massive data centers.
These facilities need land, power, water and access to roads and highways.
With the demand expanding, companies are finding all of that in our area.
A majority of the buzz around data centers these days focuses on environmental issues, taxes and jobs.
But before a single computer server gets installed, there’s a larger, quieter question that deserves a look.
Who’s paying for local boroughs and townships to deal with all of this?
The answer — even without a computer — is simple.
Local taxpayers.
There are examples all over our area, with Lower Towamensing as the latest.
Developers there filed a curative amendment claiming the township’s zoning ordinance doesn’t provide for data centers.
No matter what side of the argument you’re on, the court filing forces the township to respond.
That doesn’t come cheap.
The township has retained outside legal counsel at a cost of between $275 and $375 per hour. That’s just one line item.
Across the area, local governments are finding that zoning ordinances written long ago couldn’t plan for technology that didn’t exist, which now demands things that communities just don’t have.
And the local governments are scrambling to deal with it all.
Data centers have already been proposed in Banks, Packer and Penn Forest townships. Nesquehoning Borough has cleared the way for one, but the site is waiting for state-level permits.
In Schuylkill County a campus at Highridge Business Park is in the works, and on Wednesday, supervisors approved an Amazon location in Kline Township near McAdoo.
There’s also been talk of a data center in Tobyhanna Township, Monroe County.
Near Hazleton, Project Hazlenut, a 15-building site is awaiting a decision in Luzerne County Court.
Different counties, same story: local governments are spending time and money just to prepare for, evaluate or respond to data center proposals.
Some parts of Pennsylvania have other issues, including state permits and uncertainty over how new executive orders apply.
That creates some unique, painful issues.
While they’re waiting, costs keep adding up though the project is frozen. Many places have already invested in solicitor time, engineering studies and zoning reviews. When the state hits pause, those costs don’t disappear and the meter keeps running since locations need monitoring until the state makes up its mind.
Also, local governments often get stuck while the project sits in limbo. They can’t enforce anything because nothing’s happening. It can’t change anything because a developer is waiting on the state, and it can’t plan around a project because no one knows if it’ll restart, change or fall apart.
Sometimes, budget planning is affected. When Harrisburg delays a project, expected timelines collapse. Revenue is delayed, expenses stretch out and small local governments may have to defer other projects to compensate.
A larger problem comes when residents expect answers that local officials can’t give. People see a project in progress — cleared land, early site work and maybe a fence. Local officials try to answer as they await decisions from Harrisburg.
If a project changes or collapses, locals are stuck with the costs of redoing the process. New plans, environmental changes or other related issues trigger another round of the review process. More solicitor hours, more fees and more planning work are all a part of it.
For big tech companies, these types of expenses are routine. They bring teams of attorneys, planners and engineers to support their investments that can hit hundreds of millions or even billions of dollars.
Local governments operate at a different level. Most have only a handful of employees and budgets already stretched to cover roads, police, parks and whatever else residents expect. Cash spent answering zoning challenges is a dollar not spent on basic services.
These observations aren’t against economic development or data centers. Here in Pennsylvania, local governments may reach different decisions on how or where the centers fit in their communities.
The observations are an argument about fairness.
The state seems to see some of the challenges involved. They offer a tool kit with guidance on zoning, fiscal impact and other legal issues.
But guidance doesn’t pay legal fees, engineering reviews or advertising costs for public hearings.
As the AI issue unfolds and the demand for data centers grows, more local governments will face similar proposals, expenses and delays. And before any tax revenue or other compensation arrives, local taxpayers will finance the process.
If the state expects local governments to regulate one of the world’s fastest growing industries, lawmakers supporting local regulation should ask whether local folks have enough resources to do the job without burdening the taxpayers.
Maybe they can ask AI for the answer.
Ed Socha | tneditor@tnonline.com
Ed Socha is a retired newspaper editor with more than 45 years’ experience in community journalism.
The foregoing opinions do not necessarily reflect the views of the Editorial Board or Times News LLC.