Gov. Hochul noncommittal on massive WNY data center, subsidies

Governor Kathy Hochul is declining to take a definitive stance on a proposed, taxpayer-subsidized data center in rural Genesee County, New York, despite vocal opposition from residents and the Tonawanda Seneca Nation. Critics argue the $1.46 billion subsidy package, which equates to $11.7 million per promised job, is excessive and detrimental, with some demanding the governor intervene to halt the financial incentives and environmental approvals. Local government officials, however, are strong proponents, viewing the data center's fees as essential to fund a $150 million upgrade to the county's aging water infrastructure, which currently suffers from drought susceptibility and PFAS contamination. Christian Yunker, chairman of the Genesee County Legislature, and County Manager Matt Landers emphasize the project's role in securing a long-term water supply from Lake Ontario and reducing water rates for residents. Stream U.S. Data Centers, the proposed builder, states the facility would use significantly less water than many other data centers by utilizing refrigerants. The project has sparked a local vs. government conflict, with Genesee County residents packing a public hearing to voice fears about noise, natural land loss, and the large subsidy. State lawmakers are divided, with Sen. George Borello supporting it for economic growth, while Sen. Liz Kreuger has proposed a statewide three-year moratorium on data center construction, and Sen. Jeremy Zellner opposes the current subsidy and electricity demands. Environmental activists have also protested, urging the governor to block the development. The data center proposal recently hit a procedural snag when the Genesee County Economic Development Center failed to properly record a legally required public hearing, necessitating a do-over. Governor Hochul has stated that data centers in New York should provide their own electricity and not be subsidized by ratepayers, while also noting that this is a local decision.