Is the СŷƵ a prime location for a massive data center?
Amazon Web Services, a subsidiary of the online-shopping giant that local officials had negotiated with to build a large facility to handle mass amounts of data, recently pulled out of negotiations in one northern Northampton County community.
Upper Mount Bethel Township supervisors chair John Bermingham announced at a meeting in late April that the company was canceling plans to build at the proposed River Pointe Commerce Center near Route 611 and Interstate 80.
It marked the first time anyone publicly cited the company by name, though two anonymous sources told СŷƵ last fall that Amazon had been eyeing the area. Things remained tight-lipped, but the rumor persisted that it was Amazon.
An Amazon representative did not respond last week for a request for comment.
That leaves the future of Bethlehem developer Lou Pektor’s project uncertain. Lisa Pektor, project consultant and Lou Pektor’s daughter, said that while she could not comment specifically about Amazon due to a continued confidentiality agreement the parties signed, the company is courting several groups involved in data centers.
“The data center market is still very strong,” she said, noting the industry keeps evolving rapidly to meet the demands for everything related to technology: everything from fast-rising demand for artificial intelligence and cloud computing platforms to data for consumers’ cellphones and other services and products.
A key reason for Amazon’s decision to pull back is a lack of sufficient electricity to meet the energy demands of a large data center, Bermingham said at the meeting.
The more than 800 acres owned by Pektor and River Pointe includes a small electric-generating plant in operation and a long-mothballed coal-fired plant, the former Portland Generating Station. In 2021, Pektor loaned money for the Bangor Area Commercial and Industrial Development Authority to acquire the property for $5 million.
Pektor is looking to secure public funding toward dismantling and cleaning up the old plant.
Authority Chair Jeff Manzi said the group remains hopeful about a data center, though much work is needed, particularly related to the power plant.
“The site is more challenging for groups looking at it, because of the demolition and the … ”] cleanup that would be needed,” Manzi said.
Manzi disputed Amazon’s contention that there is not enough power, and Lisa Pektor said energy distributor FirstEnergy has indicated that the site could generate sufficient amounts of energy needed for a data center. She also said studying the demand load, in which power companies evaluate the electrical grid to achieve the amount of power needed, has taken longer than expected. The issue has also
FirstEnergy spokesperson Todd Meyers said he could not comment on details involving the company’s role in River Pointe.
“As a general rule, when we work with any business prospect, everything is confidential,” he said.
Electricity in Pennsylvania is generated by outside producers and distributed in Northampton County by FirstEnergy, which serves Upper Mount Bethel and much of Northampton County, along with the region’s other provider, PPL Electric.
The township remains hopeful for a data center, officials say, citing that such a facility could bring far fewer employees compared with warehousing or other uses, and it would mean less traffic.
Don Cunningham, president and CEO of СŷƵ Economic Development Corp., said data centers are attractive to municipal officials because of the overall low impact on infrastructure and schools, while also providing new sources of property taxes. He said a center still could come to a fruition at a site the size of River Pointe — more than 800 acres.
“However,” he said, “other areas of Pennsylvania may be more conducive, because of more available land, lower land costs and less demand for energy.”
The СŷƵ’s top business sector is manufacturing, at $9 billion annually, he said, and it takes large amounts of energy and other services to fuel it.
Since Pektor first announced plans in 2019 to build warehouses or light manufacturing in 12 new buildings at River Pointe, many residents have opposed the project over traffic, environmental and other concerns, with the group Concerned Citizens of UMBT leading the opposition.
Charlie Cole, a member and township resident, said besides power consumption, which can lead to hikes in “ambient temperatures,” data centers can emit excessive noise and require large amounts of water for cooling to absorb heat from their equipment.
“The supervisors are still amenable to data centers,” Cole said. “We want something appropriate to the health, welfare and safety of residents.”
Meanwhile, township officials continue dealing with the issue. They sent a letter last month to the Pektors stating their support for hosting a data center, and they are working on new zoning regulations specifically designed for the industry.
Lisa Pektor said the letter could go a long way to helping attract future business. “It was just helpful to use for courting the next user,” she said.
Contact Morning Call reporter Anthony Salamone at asalamone@mcall.com.
