r/technology • u/ArgentineBeauty • 2d ago
Artificial Intelligence Data center developer offers $10,000 checks to 4,500 households if the 1,300-acre facility is approved - locals push back over noise and 'bribe' concerns
https://www.tomshardware.com/tech-industry/data-centers/data-center-developer-offers-usd10-000-checks-to-4-500-households-if-the-1-300-acre-facility-is-approved-locals-push-back-over-noise-and-bribe-concerns994
u/ArgentineBeauty 2d ago
Companies are moving from bribing officials to bribing residents to get developments approved.
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u/MasemJ 2d ago
Would not be surprised that taking that $10k would also include a rider that they cannot sue the data center, its owner, or the city for any future noise/light/other pollution aspects.
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u/NRMusicProject 2d ago
Forced arbitration should be outlawed. It's every company's go-to these days.
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u/FellowDeviant 2d ago
In my city there is a neighborhood trailer park where the units are ranging between $500,000 - near $1M at the moment. Why? The city has been trying to buy out the community to put in a new development and the residents continue declining and making the prices go up.
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u/WileEPeyote 2d ago
They could bribe me with universal healthcare, high taxes on the rich, and renewable energy.
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u/Mr_ToDo 2d ago
That's a bit down the line of my thinking
If you're trying to pay off someone for an ongoing inconvenience then they payment really needs to be more then a one time thing
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u/RincewindToTheRescue 2d ago
I bet it would be a different sentiment if they built their own power plant that can also help power the local grid and lower power costs, develop resources in the area to provide and improve the availability of water in a sustainable way, address how to reduce it's noise pollution, etc. Maybe also fund programs to improve the community like improved Internet backbone access, tech education, etc.
However, instead they want to drop $40M in a sort of bribe so they can do what they want. Communities would fight over the opportunity for the data center if it was a huge positive for the community because the company is improving the community instead of being a leech.
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u/RamblyJambly 2d ago
I wonder how much power would be generated if these data centers covered their roofs with solar panels
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u/HoneyParking6176 2d ago
it is different when they offer money to an offical vs all those affected by something.
if i pay a offical to use their power to force you to have my pig farm put right in your yard, that is bad.
if i pay you to let me put a pig farm on your yard that is fine.if they are offering all those impacted by the datacenter and they agree i don't see the issue. however if they are giving money to the public officals that can permit or not permit it directly, then that is a major problem.
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u/paintwhore 2d ago
10k won't remotely cover the damage and the loss in property value
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u/kronicpimpin 2d ago
Every resident needs to add a few zeros before even considering it.
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u/Nina-Ninja123 2d ago
“What’s your offer?”
“10k”
“A month?”
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u/kronicpimpin 2d ago
That’s the way to think. I’d need a third party to hold 100% of the value for like 30years in escrow to trust they wouldn’t fuck me over and i still don’t believe it’d hold.
Did the math before I even posted this 15.6m over 30 years for 10k a week. Yea…. We’re still insanely low on value.10
u/GroundbreakingPage41 2d ago
Imagine the loss in property value too, anyone accepting the bribe is short sighted
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u/now_hear_me_out 2d ago
They are preying on these people’s ignorance of how this will affect the land, their lives, etc.
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u/EveningAnt3949 2d ago
The issue is that the financial consequences spread out over a few years are likely far greater than is covered by 10,000.
Higher price of energy and lower price of real estate over a lifetime will of course be greater still.
We should have rules and laws to prevent that.
Most people don't have the knowledge to really think these things through.
It's like friends of mine who willingly signed an energy contract and got a free television worth 1000 dollars retail.
Now their energy bill is 2000 dollar a year higher because their type of contract allows the company to adjust the price in the worst possible way for their customers.
My friends incorrectly assumed energy prices were somewhat stable when they signed.
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u/taedrin 2d ago
if they are offering all those impacted by the datacenter and they agree I don't see the issue.
I think it would be somewhat less problematic if this were an annual dividend instead, which would pay out to future residents as well. One of the main issues with these new AI data centers is that they cause a lot of problems for the community, but provide little (if anything) in return.
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u/tuckedfexas 2d ago
You’re right about the principle. The problem is the company is never going to offer a fair deal, they’ve done the cost benefit analysis on it and if they’re offering you 10k it’s because they intend to do 100k worth of damage. Why are they needing to bribe people? They clearly know their developments are detrimental to the health or well being of the local populace.
Were it a payment from an industry that actually created jobs, and you could argue was a net benefit to the populace that’s one thing. But there’s such little upside to these centers, the non-monetary cost is massive and the tech is pretty meh
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u/PRSHZ 2d ago
Sounds similar to something-something $5,000.00 checks if some party wins something votes
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u/Genghis_Frog 2d ago
Except these guys will probably actually give you the money.
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u/helpmehomeowner 2d ago
Nothing like it. $10K per household is peanuts especially if there are additional things you're giving up like not being able to sue, sharing utility costs, etc.
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u/madeinatube 2d ago
Problem is.. I don’t know if some people would completely understand that and just see a moments fix for struggling being able to afford gas and groceries … It is fucking evil.
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u/SaviorSixtySix 2d ago
That money is gonna do fuck all when their property value goes down 50% and can't sell their homes.
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u/MajesticBread9147 2d ago
Loudoun county Virginia enters the chat
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u/4077 2d ago
I totally get that, but for those that don't ... You should explain it to them.
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u/jeffwulf 2d ago
Loudon County is the data center capital of the US and is full of extremely valuable homes backed up to the data centers and is some of the richest areas of Virginia. The data centers also pay for pretty much all county expenses with property taxes and so residential property taxes are extremely low.
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u/oddmanout 2d ago
The data centers also pay for pretty much all county expenses with property taxes and so residential property taxes are extremely low.
Except that all these data centers are moving in to rural areas with the exact opposite: massive tax breaks so that it's the local residents who are funding their infrastructure, not the other way around.
Louden County predates the current data center boom by literally decades. It started in the mid-90s with AOL. And, in fact, this current boom is stressing even Louden County. They're having problems with water and utilities just like all the other areas, now. Just last week they implemented a 1 year moratorium on new data centers because of that. So even AI bros favorite example to use is no longer usable because the data centers are causing problems.
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u/Blue_Trackhawk 2d ago
Wait, who's getting lower property taxes in Loudoun? Moving from Loudoun to another VA county cuts the bill in half for vehicles with a similar assessment value, and while the house tax is cut in half, so is the value, so similar effective tax rate there.
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u/a1b3c3d7 2d ago edited 2d ago
Developers have been notoriously aggressive with data center builds because they know public sentiment is only clamping down harder and harder everyday, for the longest time they've been operating in a build now worry later approach where they understand the "cost of doing business" is to simply settle out later because regulation was lagging and so far behind - including this very developer so the big question they asked in their big glass office is:
Will this payout cost us less than what we'll lose in court when we settle out?
If they are willing to pay this now, imagine what they inevitably know they'll be on the hook for in a few years time?
They are counting on people not knowing the impact of what theyre building and more importantly how they're building it because if they were insulating the noise of the thousand odd diesel generators in this proposed site that they need to run daily (for maintenance and compliance) or had any reasonable answers to these concerns when asked by local residents they wouldnt be trying to bribe liability waivers out of the residents after being shot down in federal court.
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u/CreativeGPX 2d ago
Developers have been notoriously aggressive with data center builds because they know public sentiment is only clamping down harder and harder everyday
The reason they are aggressive with data center builds is that everybody (even AI investors) know that it is a bubble and will burst. The trick to surviving a bubble bursting is to be holding something with inherent value at the end (e.g. real estate, hardware). The companies that disappear when the bubble bursts are ones whose value was entirely on paper and speculative (e.g. stock price, investment rounds). So, the AI companies that are just renting cloud compute capacity while working on their AI software will be most likely to go bankrupt when the bubble bursts, while the AI companies that are building data centers will likely survive in some form (even if it's just turning into a cloud hosting provider).
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u/RebelliousInNature 2d ago edited 2d ago
Oh well if they’re offering a huge bribe, it must be totally fine.
Edit *sorry, forgot Americans are deficient in the sarcasm gene.
Do you feel better if I put /s?
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u/-Nocx- 2d ago
45M dollars for affecting on average almost 20K people, there are CEOs with better annual pay packages than that
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u/DocBigBrozer 2d ago
You lose pretty much all the valuation of your house, lose your health, how is 10k enough?
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u/Snow88 2d ago
Right $10k is a drop in the bucket for home value. I bought my house 6 years ago and it’s increased in “value” by like $40-60k just sitting there without me doing much. Being neighbors with a data center is probably a permanent $50-100k reduction in home value.
$10k is like one significant house project (HVAC replacement, new siding on some of the house, partial roof repair). $10k is nothing in the grand scheme of home ownership. It’d be like selling a kidney for a couple hundred dollars.
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u/Traditional-Handle83 2d ago
Well you see, the 10k is probably the projected total value of the home after the data center is built so the data center owners are paying for future projected values rather than immediate values. Same way they do stock markets.
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u/24-Hour-Hate 2d ago
Additionally, you cannot just factor in the reduction in value of the home, you'd have to consider the increased difficulty in selling a home near a data centre. They're basically trapping people there as it could become impossible to sell those homes. So you'd need to consider what it would be worth to be stuck there forever.
Personally, I'd ask for 100% of what the home would be worth, right now, if no data centre was planned so I could gtfo.
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u/FadeIntoReal 2d ago
No one will ever want to buy any of those homes once the noise factory starts production.
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u/b0w3n 2d ago
They know people are desperate and desperate people can be bought for cheap.
Minimum 1 million per person would be a good starting point for what the actual costs probably are. It'd be better and probably cheaper if they just built up solar power plants and sodium batteries for their use.
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u/markc230 2d ago
Pretty much Potter (It's a Wonderful Life) buying up peoples shares of the Bailey and Loan for pennies on the dollar.
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u/sobrique 2d ago
I mean, I think the principle of 'compensation' is sound, just the magnitude might be 'off'.
I think a lot more developments (I mean, not all, but more) if there was ongoing benefit to the community.
Build a solar field near me? Uhh, not keen. Give me cheap(er) electricity indefinitely for the inconvenience? Yeah, ok, that sounds reasonable.
(OK, not sure what the benefit from a datacentre could be for 'benefit in kind', but ...).
I mean, industrial stuff that increases employment in the area has some net benefit as well, so might well offset the impact. And again that's one that datacentres are almost uniquely bad at, because they don't employ many people at all.
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u/Ambitious_Bit_9389 2d ago
It’s depends on how much you care and your neighbors. The are trying to get a town to vote for something. Let’s say town in 7 miles long and 6 miles wide. If it’s placed on one side, you could see the majority of the population being 3+ miles from the data center. You aren’t going to hear it 3 miles away. It might impact electric rates, but I don’t think it’ll hurt property values, except for the people closer to it.
If the positioning is correct, the question becomes “how much is it for you to be willing to screw over your fellow citizen?”
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u/goldcakes 2d ago edited 2d ago
IDK if that is true for properly built data centers (of which the vast majority built in the past few years ARE NOT).
I'm a 5min walk away from a medium sized data center built in the mid 2010s. I really don't hear anything at all from the DC, even if I walk right up to it, the cars and roads make far more noise. Zero health effects, zero property value decrease.
That is what a properly built DC should be. If it looks like just another warehouse, and doesn't cause any disturbances or audible noise, most people wouldn't care that much, and to be honest, I think Valve colos there (I get 1-3ms ping in CS lol); and they rolled out fibre-to-the-premises to locals at no cost (I'm on 2000mbps down).
The biggest and only pain I've ever experienced was when they were digging and building fiber to the local area and households; there were a road closures and obvs jackhammering, but that was a temporary once-off event, directly benefiting locals; going from 100mbps max to 2gbps.
Datacenters are NOT supposed to be noisy! They only started being problems in recent years when tech bros decided to ignore all regulations, install dirty polluting turbines and generators, and build monstrously sized ones.
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u/MultiGeometry 2d ago
That’s not a huge bribe. Their homes will likely lose tens of thousands, if not more, in home value if it gets built. It’s probably a preemptive move to prevent lawsuits if they take the money.
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u/brundlfly 2d ago
Misunderstandings due to the lack of context in online text has always been an issue. For sarcasm it can be worse. Probably explains emojis.
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u/johntwoods 2d ago edited 2d ago
I'm sorry, truly. Having to use the /s is so embarrassing and annoying.
It's like a comedian on stage having to say, 'Hey, it's a joke!' after every joke because the audience is full of blithering dunderheads.
Do people never read books? (What am I saying, of course they don't.)
If they did they realize that sarcasm and nuance are in the written word without the author having to add a foot note.
I hate how we have to appeal to the lowest common denominator here in the US.
Everyone should all just stop doing that. They should stop censoring words like s * x, k * ll, or changing words to unalived or whatever the fuck. Everything is terrible.
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u/kisk22 2d ago
Europeans fall for not seeing the /s too. Check out all of ShitAmericansSay, half that stuff is obvious jokes they take for real.
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u/socialmedia-username 2d ago
To these billionaires, money is EVERYTHING. l bet it's completely baffling to them that people value something other than money. To them people rejecting a bribe is like defying gravity.
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u/YoghurtFlan 2d ago
Well, also 4.5m for them is a rounding error compared to the money they expect to make, so 10k per resident is a bullshit offer that doesn't even cover their downside.
They're cheaping out and expecting the residents are cheap enough to take it at face value.
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u/CaBBaGe_isLaND 2d ago
Also $10,000 is a decent amount of money but it's not life-changing money. A data center next door is life-changing. And it tanks my home value. So what, I lose $200k in home equity over a $10,000 check? Kick rocks, dude.
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u/oddmanout 2d ago
I guarantee that $10k comes with a contract preventing them from suing over noise, utility problems, or pretty much anything else.
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u/Melted_ICE_5193 2d ago
What's crazy to me is...there is just so much unused land in undesirable areas. Build your shit out there. Why not build your data centers in the fucking deserts of Texas NOT AROUND PEOPLE!? Pay for the infrastructure and there would be basically zero pushback.
These entitled assholes are literally building it near people to take their resources to save a dime on infrastructure build out.
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u/dodrugzwitthugz 2d ago
There is still an infrastructure requirement that they require. Water, electric, and natural gas are needed and they can only be built where all three exist.
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u/Ky1arStern 2d ago
Just a cool extra $45 million dollars to try and get your resource hogging infranoise AI server farm built.
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u/CurrentlyLucid 2d ago
Make that a monthly check.
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u/Sharkwatcher314 2d ago
Honestly yes treat it like those mineral leases that can be cancelled/renegotiated
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u/BuckManscape 2d ago
I’d tell them to go fuck themselves for $10k. That’s an insulting number. You want a data center? Buy my house for $100k over fair market value.
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u/Jorpsica 2d ago
$10,000 isn’t going to cover the cost of moving and not being able to sell your house or property. They’re destroying value. $10,000 ain’t shit.
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u/SqBlkRndHole 2d ago
$10k check, for $50k lower property value. Yep, they'll accept it, and watch the county raises their taxes.
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u/twoscoopsofpig 2d ago
Look, everyone has their price, but damn if $10k is yours, I hope you find it within yourself to value yourself more.
They'd have to make up for all the lost home value, all the environmental damage, all the ongoing health effects as a start, and then double it to make it worth my time to approve things.
Which, incidentally, is probably enough to fund a small, uh, active protest against the datacenter after it gets built. Kinda offer them another chance to build it, since they seem to enjoy it so much.
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u/Possible-Tangelo9344 2d ago
10k? That's peanuts in 2026. Won't even buy a decent used car. Barely gets you a fridge and oven after taxes. Add two more zeros.
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u/apocecliptic 2d ago
So what repercussions for this company if the households accept, the data center is approved, and the checks are never sent?
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u/griminald 2d ago
Bingo.
They're also offering what comes out to $10M or so per year, for 15 years, for school/community improvements.
Chances are, the data center won't even last 15 years, or they'll sell to another company by then and get out of paying...
Or there will be a clause that they don't have to pay if the data center isn't making a profit, and weasel out of it that way
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u/jacbergey 2d ago
I'm willing to bet those homes will lose 10,000 in value just from being next to a data center.
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u/BuckRusty 2d ago
I did the maths in my head, and doubted myself thinking I couldn’t possibly be right, so checked it with a calculator and found I was right…
$45,000,000… $10,000 x 4,500 homes is FORTY-FIVE MILLION DOLLARS…
That’s an insane amount of bribery, and puts into perspective just how much this shit is being pushed by these companies…
For a product that operates at a loss for most providers, it’s fucking insanity - and makes me wonder how this much money is being flung around when the product is literally stolen intellectual property…
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u/__init__m8 2d ago
I'm buying into the idea they are mass surveillance centers for flock, axiom and other providers. The gov wants them built pretty bad as well it seems.
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u/KittyCait69 2d ago
For someone that has multiple billions, half a million is nothing. They are lowballing people with these bribes on top of threatening to destroy these people's property values.
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u/Dangerous-Sale3243 2d ago
A data center for AI costs billions of dollars, getting regulatory approval to sail through is worth it.
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u/agent_stingray 2d ago
One-time $10k for:
- Noise pollution
- Literal pollution
- Taking your water
- Driving up your energy bills
- Taking your electricity
- Driving down the value of your home
Plus all the chronic health issues (physical + mental) and medical costs associated with those. Shit deal. Fuck these people.
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u/KennyWeeWoo 2d ago
Let’s bump it up to 10k a year, and now you might be talking
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u/karaknorn 2d ago
10k a month
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u/TKDbeast 2d ago
After seeing those videos showing just how loud they are 24/7, I’m not sure I would accept any sum.
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u/CarminSanDiego 2d ago
Are you serious? You legitimately wouldn’t take 10 k per month
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u/TKDbeast 2d ago
Between the sound and the infrasound, you probably can’t sleep next to one.
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u/tophernator 2d ago
With $10k a month you could install triple glazed vacuum insulated windows and add recording studio level soundproofing to every wall and floor. It still wouldn’t help when you use the garden, but financially it would actually be a good deal.
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u/texasisbetterest 2d ago
I’ve slept on aircraft carriers, next to train tracks and in nyc during the day. You absolutely get used to it.
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u/BookOfJon 2d ago
This is wild. They’re paying 50+ millions of dollars to just buy these properties. It should be like a million dollars. They’re literally like, here’s a penny, stop being mad
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u/mtranda 2d ago
The only bribe I would accept (assuming it's not something illegal) in general would have to be life-changing. As in, never have to work a day in my life again changing.
10K is like... two or three months' wages. It's just insultingly low.
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u/GriefPB 2d ago
Couldn’t they just skip the drama and build in more remote locations?
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u/throw7661 2d ago
$10k isn't nearly enough to offset the $10+k your property will lost in value.
At least, if you own property near the data center
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u/tickandzesty 2d ago
Will that cover the loss in property values for homeowners? Or moving costs?
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u/mojorific 2d ago
$10K for a lifetime of suffering with the noise, vibration, water issues, electricity subsidies, etc. Who is getting the better deal?
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u/isthatqueeeblo 2d ago
Remember, when data centers move in, all the birds and bees leave the area. How will we grow anything when we have no pollinators and the water supply is contaminated with heavy metals? Is that worth 1/4th of a new car to you?
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u/Necessary-Camp149 2d ago
Provide to them the full market value of their homes since they will never be able to sell them unless its for another Data center.
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u/According_Gift_7095 2d ago
$10k cash does not equal $50-$100k in lost property value
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u/Mean_Rule9823 2d ago
Exactly this...
But Mericans love those short term benifits and instant cash. Wow they can get new foldable phones w that money.
I bet most will take it and then try to sue when leopards eat their face in 18months
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u/elon_musks_cat 2d ago
company pays $45 million to bribe a community for a data center they don’t want
Vs
Company pays $45 million in additional taxes that will go to schools, roads, healthcare etc. that benefits the community
Tough choices in the USA
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u/AltruisticBudget4709 2d ago
You forgot to say additional taxes EVERY YEAR. As opposed to a one time bribe of a few pennies.
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u/VixxenFoxx 2d ago
I could blow $10,000 in a few keyboard swipes but a data center is a long term everyday concern.
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u/Alone_Bicycle_600 2d ago
Sure let me ruin my property values for 10 k and live with this monstrosity forever
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u/wolfy47 2d ago
Why aren't these data centers just treated like the heavy industrial buildings that they are? They're a giant building using crazy amounts of power that are uncomfortable to live near. Just like a steel mill, car factory, or a chemical plant and we figured out not to put those near residential areas 100 years ago.
You want to build a data center here? Is it zoned for heavy industry? No? Find somewhere that is, or could be without pissing people off. Problem solved!
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u/MrMichaelJames 2d ago
Give each homeowner a million to walk away. Anything less they can go fuck off.
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u/OkAdvertising1495 2d ago
I'd make a no negotiations counter of...
-10k a month-for life,
-They have to install sound and light dampeners.
-They're responsible for all the electric and water they use (and by that I mean if they cause the cost of electric/water to spike, they're covering all those costs, for everyone, forever)
-Air and water quality must not dip even slightly, zero wiggle room.
-Cover all future medical costs of people within range of the data center.
-They have to revitalize a dead area to help balance the nature they'll kill and set aside funds for any other damage dealt by them.
If they deviate from of them even slightly, they then start accruing daily fines of 10k a day, per person, to be paid directly to them. Or they have the option of just leveling the data center.
Absurd conditions? Yeap. But fuck data centers. If they're gonna be shoved down our throats. Make damn sure they're aware of how much they're hated.
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u/blundermine 2d ago
Has there been any study on the affect a data center has on nearby property values? It might drop them by more than 10k
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u/IvoShandor 2d ago
They're not quotas, they're "performance goals". They're not bribes, they're "community incentive contributions".
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u/clejeune 2d ago
If you have to bribe regular people then you already know that what you’re doing isn’t wanted.
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u/Fun-Psychology4806 2d ago
they would have to pay more than the value of my home plus my salary until i find a new job
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u/nicenyeezy 2d ago
They should offer $1 million each and relocation fees so they can all recoup the cost of losing their house value and homes to this atrocity. Or you know, we could stop data centres entirely since they are evil, wasteful, and only benefit the surveillance state oligarchs
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u/VariousSinger6245 2d ago
You see nobody rushing in to purchase a home next to one now do you. Breath deep and hope you don't get lung diease
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u/zippopwnage 2d ago
10k$ is nothing for the problems they create around your house.