State Legislature expected to pass moratorium on new data centers
GCEDC calls pause on new projects ‘egregious infringement on our local decision-making rights’
The State Legislature is expected to pass a moratorium on new data centers, pausing projects for a year.
The Assembly and Senate could vote on the moratorium this week, and if it passes would then go to the governor.
The Genesee County Economic Development Center is working to site a nearly $20 billion data center at the STAMP site in the town of Alabama.
That project has been bitterly opposed by many environmentalists due to its presence by the wildlife refuge. The neighboring Tonawanda Indian Nation also has railed against the project, claiming it would be disruptive to the Tonawanda Seneca Nation.
The GCEDC said the data center would bring about $700 million in municipal revenues over the next 30 years. Building the data center is expected to employ 1,200 construction workers over five years, with 125 employees then working at the site.
The project seeks about $1.4 billion in sales tax exemptions – $715,944,000 locally and $715,944,000 to the state. Stream also is seeking an exemption on the 1.0 percent mortgage tax, which totals over $31 million with $15,613,500 each locally and to the state.
STREAM US Data Centers would operate on 90 acres out the 1,250 acres at STAMP, and would consume 500 megawatts of electricity.
Mark Masse, president and CEO of GCEDC, issued this statement today about the roposed legislation for a moratorium on data centers:
“The proposed data center moratorium legislation is yet another effort by the New York State Legislature to thwart home rule and local decision making.
“In this instance, the data center project at the Science & Technology Advanced Manufacturing Park (STAMP) in the town of Alabama could potentially have shovels in the ground in a matter of weeks pending local government approvals.
“The legislation requires the development of regulations to mitigate environmental impacts and to assess any cost increases to electricity customers due to power consumption.
“The proposed STREAM US Data Centers project is undergoing a thorough and rigorous environmental review.
“It has already been established that electric usage would not have any impact on residential utility bills, water consumption and discharge would be minimal due to a closed loop cooling system, the backup power source consists of a single propane generator per building, there would be minimal displacement of wildlife and while up to three studies are ongoing to assess noise impacts, information to date indicates that noise levels would meet all applicable local noise thresholds.
“If this legislation passes and prevents this development from moving forward at this stage, it would be an egregious infringement on our local decision-making rights.”
Democrats in the state Senate and Assembly want a one-year pause of new data centers so the state has time to enact strict regulations around their operations and energy use. Legislators want assurances the data centers and their massive energy consumption won’t spike rates for other users and won’t overwhelm the power grid.
If enacted, New York would be the first with a state-wide temporary ban on new large-scale data centers.

























