A $15 Billion Data Center Proposal Sparks Debate in Middlesex Township
A proposed $15 billion data center complex in Middlesex Township, Pennsylvania, is generating both excitement and apprehension among local residents. The developers of “Project Bolt” recently hosted an open house, inviting community members to ask questions and learn more about the ambitious project. While the event provided an opportunity for dialogue, many questions remained unanswered, leaving some residents with lingering concerns.
Data centers, essentially large-scale computer server farms, are crucial infrastructure for managing the ever-increasing demands of information storage and sharing. The plans for Project Bolt envision three separate campuses, each containing six buildings, on an undeveloped tract of land along Country Club Road. The proposed site is near residential areas like The Meadows and Country Manor Mobile Home Park. Developers emphasize that all buildings will be situated at least 1,000 feet away from the nearest homes. They assert that the Country Club Road location is “uniquely qualified” for a “tucked away, low-impact data center development.”
Project Origins and Developers
The project’s roots trace back to Fred Kayne, a real estate developer who initially proposed a housing development on the same land. When Kayne’s PennTerra project stalled, his partner, Igal Feibush, sought alternative uses for the property. Recognizing the growing need for computing power and the expansion of data centers beyond traditional hubs, Feibush saw an opportunity.
Feibush, now CEO of PA Data Center Partners, teamed up with Powerhouse Data Centers, a development company based in northern Virginia. Together, operating locally as Carlisle Development Partners LLC, they acquired the PennTerra tracts for $44 million. The developers emphasize their commitment to the area, stating they didn’t simply “drop in from outer space.” They are currently seeking end-users to occupy the three campuses, with these tenants responsible for the data centers’ operations.
Potential Economic Benefits
Local officials are optimistic about the potential economic benefits of Project Bolt. The development promises a significant increase in property tax revenue, which could be a boon for the Cumberland Valley School District and Cumberland County, both facing budget challenges. Projections estimate $65 million annually in new taxes for the township, school district, and county, although this figure hasn’t been independently verified.
The project could also create hundreds of new jobs. PowerHouse representatives estimate each building could employ 25 to 40 workers, depending on the specific tenants and technologies used. This translates to a minimum of 450 jobs at full build-out, including entry-level positions starting at $25 per hour, as well as salaried engineering and management positions with salaries ranging from $70,000 to $120,000 per year. The prospect of attracting major tech companies like Google, Amazon, or Oracle to the region is also seen as a potential benefit.
Water Usage Concerns
Despite the potential advantages, residents voiced concerns, particularly regarding the project’s water usage and its impact on the region’s water supply. PowerHouse representatives stated they would work within the water capacity provided by the Middlesex Township Municipal Authority. They suggested potential solutions like on-site water storage tanks or developing new water sources. However, the lack of specific details about water demand drew criticism from residents.
The developers explained that detailed plans are contingent on securing tenants, as their specific needs will influence water requirements. This explanation, however, didn’t alleviate concerns, with some residents expressing frustration and skepticism. They cited water-related issues associated with other data center projects as reasons for their apprehension. Some residents demanded greater transparency and detailed information.
Power Supply and Potential Cost Savings
PPL Electric, the region’s electric utility, addressed concerns about powering both the data center and existing residents. They assured residents that planned grid upgrades, including a new substation at the Project Bolt site and upgrades to existing transmission lines, would ensure a reliable power supply. These projects still require approval from the state Public Utility Commission.
PPL also suggested that the project could lead to lower electric distribution charges for residents. While the grid improvements will increase overall transmission costs, the additional load from Project Bolt is expected to reduce the cost per kilowatt hour across the system by approximately 10 percent. This could translate to savings of more than $5 per month for residential customers.
Community Skepticism and Oversight Concerns
Despite the developers’ efforts to address concerns, some residents remain skeptical. One resident suggested that the developers are primarily focused on real estate development rather than data center operations, and that the ultimate concerns will need to be addressed by the end-users. He emphasized the need for assurances that the area’s water supply will be protected and that electric rates won’t skyrocket.
Another resident expressed concern about the scale of the project and the ability of the township to adequately oversee it. He noted that the township board may lack the expertise to fully understand the complexities of such a large-scale commercial development.
The township supervisors recently approved a new zoning overlay district for the Country Club Road tract and hired an engineering firm to lead the review of Project Bolt. However, some residents believe that more safeguards are needed to protect the community’s interests. They are seeking more information and greater transparency from the developers.
