The story so far
written Sep 28What is happening
Hazle Township officials are currently drafting new zoning rules that will determine if a 1,250-acre data center campus can proceed near residential areas [1][5]. The outcome affects a proposed $165 million community benefits package, which includes $10,000 grants for every township household and a $30 million utility offset fund [4][6][8]. These payments are contingent upon the approval of "Project Hazelnut," a 15-building facility planned near Interstate 81 and Humboldt Industrial Park [2][9].
The township is operating under a 180-day moratorium on data center approvals enacted on June 8, 2026 [3][5]. This pause allows the Board of Supervisors to address a zoning ordinance previously declared invalid for failing to regulate data center land use [1][5]. A model ordinance under review suggests a 2,000-foot setback for hyperscale facilities from schools and homes [3].
What to watch
The 180-day moratorium on data center approvals is scheduled to expire in early December 2026 [1][3]. Before that date, the Board of Supervisors must finalize and vote on the curative amendment to the zoning ordinance [1][5].
Following the zoning update, the Hazle Township Zoning Board will hold a special exception hearing to vote on the project's permit [2][3]. The Pennsylvania Department of Environmental Protection must also issue a final permit decision before construction can begin [10].
Read the full brief · how we got here
How we got here
Luzerne County Judge Lesa Gelb ruled on May 26, 2026, that NP Hazleton Holdings 1 LLC must seek approval through a special exception hearing rather than land development appeals [2]. This ruling followed the township's initial denial of the project [2][10].
NorthPoint Development introduced the revised $165 million benefits package on June 24, 2026, to address local concerns regarding noise and rising utility costs [4][8]. The proposal aims to mitigate the impact of the hyperscale campus, which would occupy 1,250 acres [2][5].
References · 9
- [1]timesleader.com — Hazle Twp. finds zoning ordinance invalid, will draft amendment to ...
- [2]standardspeaker.com — Judge rules against Project Hazelnut data center
- [3]newsbreak.com — Hazle Township pauses data center approvals to rewrite zoning rules
- [4]projecthazelnut.com — Project Hazelnut | Hazle Township, PA
- [5]foodandwaterwatch.org — Hazle Township, PA Pauses Data Center Development for Six Months
- [6]timesleader.com — Hazle Township data center developer announces community development ...
- [8]timesleader.com — Project Hazlenut developer anounces $165 million community benefits ...
- [9]lehighvalleylive.com — Developer offers $10K to every household in Pa. township. The catch ...
- [10]poweredbywho.com — Project Hazelnut (Hazle Twp — Denied, On Appeal) Data Center ...
What would close this
0 of 4 metTimeline
newest firstWhen we started following: Hazle Township enters final quarter of data center moratorium as NorthPoint Development proposes $165 million benefit package
Hazle Township is currently operating under a 180-day moratorium on data center approvals, enacted by the Board of Supervisors on June 8, 2026 [1][3]. The pause allows officials to draft a curative amendment to the zoning ordinance, which was declared invalid for failing to address data center land use [1][5]. The township is evaluating a model ordinance that suggests a 2,000-foot setback for hyperscale facilities from residential areas and schools [3].
This regulatory shift follows a May 26, 2026, ruling by Luzerne County Judge Lesa Gelb, who denied an appeal by NorthPoint Development offshoot NP Hazleton Holdings 1 LLC regarding the township's initial denial of "Project Hazelnut" [2]. The judge ruled the developer must seek approval through a special exception hearing before the zoning board rather than through land development appeals [2][3].
In response to local opposition regarding noise and utility costs, NorthPoint Development announced a revised $165 million community benefits package on June 24, 2026 [4][8]. The proposal includes a $30 million fund to offset potential utility rate increases and offers $10,000 grants to every township household, contingent upon project approval [6][7][9]. The proposed 1,250-acre campus would house 15 data center buildings near Interstate 81 and Humboldt Industrial Park [2][5].