Data center developer says wheels in motion for city zoning request
EKG Group is proposing a $570 million data center and tech campus in Albany, New York, requiring a zoning change to a "light industrial" designation. The project faces community opposition regarding its benefits and potential environmental impacts, as well as complex city and state regulatory hurdles, including a proposed statewide data center moratorium.
Michael-Henry Elghanian-Krayem's New York City real estate firm, EKG Group, plans to develop the $570 million Kenwood Commons data center and tech campus on a 76-acre site in Albany, New York. The ambitious project, which could see a total investment of $2 billion, includes a 500,000-square-foot edge data center, research labs, offices, clean tech manufacturing, and nearly 300 apartment units. The site, formerly Kenwood Academy, is owned by Guild Ventures.
Currently zoned as a mixed-use campus, the project requires a zoning change to a "light industrial" designation, which the developers intend to seek under existing city regulations. This process is expected to be arduous, involving multiple city-level approvals, public hearings, and state environmental reviews. Common Councilwoman Deborah Zamer, who chairs the planning committee, stated that several zoning law changes are necessary, and the Planning Board's recommendation is crucial.
The proposal has encountered significant community opposition, particularly from the South End community, who raised concerns about economic benefits, housing, and the general presence of a data center. Elghanian-Krayem addressed some of these concerns, asserting that the data center would not increase wholesale electricity prices or draw excessive water, and that backup power would avoid diesel generators, acknowledging the site's location in an environmental justice zone.
Further complicating the project, Councilwoman Zamer has introduced city legislation supporting a recently passed state Legislature bill that proposes a one-year ban on new data centers statewide, awaiting action from Gov. Kathy Hochul. Zamer emphasized the need for a comprehensive city-wide analysis of data center zoning implications, noting that data centers are not currently permitted under any of Albany's existing zoning designations, making legislative changes essential for the project's progression.