Town Manager Austin Cyganiewicz sent a memo to the Sutton Select Board on Nov. 9 outlining a tentative $16 billion private‑investment data‑center campus proposed by Unified Global Packaging Group and The Kraft Group. The plan calls for ten 250,000‑square‑foot buildings that would draw roughly 900 megawatts of power at full build‑out.

Project scope and timeline

The first phase would consist of two buildings, each about 250,000 sq ft and consuming roughly 90 megawatts, with an opening target of 2029. The developer’s financial model assumes eight additional buildings of the same size, with two more opening each year from 2030 through 2033.

Each building is valued at about $675 million in real property—primarily electrical, cooling and generator systems—plus roughly $1 billion in computer equipment. Town staff, however, estimate a more modest $250 million per building for structure and land, plus $560 million in fast‑depreciating server equipment.

Tax impact on Sutton residents

Using the town’s lower estimates, the first two buildings would generate about $10.4 million in annual property tax once fully assessed in fiscal 2031. When all ten buildings are on the rolls by fiscal 2035, the annual tax bill could rise to roughly $27.8 million.

Sutton’s total tax levy for fiscal 2027 is about $32 million, so the data‑center campus would dramatically broaden the tax base. Staff calculations show the fiscal 2031 tax rate could drop to $8.83 per $1,000 of assessed value—down from $11.78 without the project. By fiscal 2035, the rate might fall to $5.68, compared with $12.05 otherwise.

For the average single‑family home, currently assessed at $662,769, the fiscal 2031 property‑tax bill would shrink to about $6,846 from a projected $9,134. With the full campus in place, the average homeowner could see a reduction of roughly $5,800 on the fiscal 2035 bill.

Municipal costs and financing

The town estimates one‑time building‑permit fees of about $31 million, which Cyganiewicz recommends directing toward capital needs, reserves, or debt and pension obligations. The proposal does not yet detail additional municipal costs such as public‑safety training, equipment, or road wear during construction.

Sutton’s Multi‑Year Financial Plan projects a structural budget gap growing from about $300,000 in fiscal 2028 to $9.1 million in fiscal 2033, driven by rising education costs and employee benefits. Data‑center revenue would not arrive until after fiscal 2030, but the memo notes that starting in fiscal 2031 the gap would close, leaving roughly $10 million of unused levy capacity, expanding to about $26 million by fiscal 2033.

State regulatory backdrop

Governor Maura Healey’s Executive Order 658, signed on Sept. 8, requires data centers with peak demand over 25 megawatts to obtain state approval before local permits are issued. The order also mandates that such facilities purchase enough clean electricity to match annual use or contribute to a Ratepayer Protection Fund that will lower supply costs for all electric customers.

The town’s memo identifies a community‑benefits agreement and a zoning bylaw amendment as the two primary tools for meeting the state’s requirements. Because state permits now hinge on a signed agreement, Cyganiewicz says Sutton would retain “meaningful leverage” and intends to make any terms public before a Town Meeting vote.

Next steps

Sutton’s zoning bylaws currently do not address data centers. An amendment would define the use, limit it to a special permit in a suitable district or overlay, and set standards for noise, water use, traffic and decommissioning. The amendment would require a Planning Board hearing and a two‑thirds Town Meeting vote.

If the town moves forward, the community‑benefits agreement, the zoning amendment and an independent technical review are expected to progress together over the next six months.

Original reporting: This Week in Worcester — read the source article.