N
orthPoint Development is seeking a Luzerne County real estate tax break for its proposed 15-building data center in Hazle Township. The project, dubbed "Hazelnut," would occupy a 1,280-acre site near the Humboldt Industrial Park's north zone and be accessible via an extension from North Park Drive.

    Data centers are increasingly in demand to house computing equipment that stores and processes business information. To incentivize development, Luzerne County is considering a tax break under the Local Economic Revitalization Tax Assistance (LERTA) program for blighted properties. This would allow the property owner to pay taxes on the land while receiving a discount on new development.

    NorthPoint initially proposed full county real estate tax forgiveness for seven years, followed by 90%, 80%, and 70% reductions in subsequent years. However, the company revised its proposal to offer 90% forgiveness for the first seven years, then 80%, 70%, and 60% over the final three years.

    As part of the deal, NorthPoint would provide an estimated $1.18 million in payments in lieu of taxes, with $2,500 paid per acre for each structure built. The company estimates that construction will be completed in phases, with building permits issued in January 2026, July 2026, and January 2027.

    Infrastructure committee members raised questions about the types of jobs created and how the data center's energy demands would be met. NorthPoint representatives assured them that the public water system would only be used for standard business purposes, and an air-cooled system would suffice most of the time to minimize reliance on water for cooling.

    The project is expected to create approximately 900 permanent jobs, including electrical engineering and information technology positions with family-sustaining wages. The infrastructure committee voted to advance the tax break request to council's March 11 work session for discussion.