Allegany bans building of data centers

Elected officials in the Town of Allegany, located in Cattaraugus County, New York, have unanimously adopted legislation to prohibit the development, construction, and operation of data centers and cryptocurrency data mining facilities within their municipality. The town supervisor expressed strong support for the ban, citing potential threats to the health, safety, and well-being of residents, and encouraged other Western New York communities to consider similar proactive measures to prevent such developments.

In a separate but related development, officials in North Tonawanda, Niagara County, are expected to vote on a proposal to extend a temporary moratorium on data centers for an additional 12 months. Mayor Austin Tilich noted that while moratoriums are not permanent solutions, they provide a crucial pause to allow time for communities to understand impacts and update zoning regulations.

The discussion in North Tonawanda is partly driven by an ongoing effort from Digipower, which operates an existing cryptocurrency mining facility on Erie Avenue, to convert its building into an AI data center. Mayor Tilich acknowledged that surrounding neighborhoods have experienced negative impacts from existing facilities, prompting a citywide review of zoning codes to implement restrictions that prevent future burdens on residents.

The Allegany town supervisor has indicated his willingness to collaborate with leaders across Western New York to share insights and processes for creating legislation that effectively restricts or prohibits data center construction, highlighting a regional trend of communities grappling with the rapid growth of the data center industry.