Salem board upholds permit revocation for data center project
The Salem Zoning Board of Appeals unanimously upheld the revocation of a permit for a proposed "low-latency inference point" facility by Prime Group Holdings, determining it did not fit Salem's existing zoning code for a business office. This decision comes amidst a proposal by Mayor Dominick Pangallo to prohibit data centers in Salem and a statewide executive order by Gov. Maura Healey restricting future data centers in Massachusetts.
The Salem Zoning Board of Appeals (ZBA) unanimously voted to uphold the Salem Building Commissioner's decision to revoke a permit for a proposed "low-latency inference point" facility at 35 Congress St. Developers, Prime Group Holdings, argued the facility was not a traditional data center but a specialized point for low-latency data processing.
The ZBA's decision centered on whether the project fit Salem's existing zoning code as a business or professional office, ultimately concluding it did not. This action aligns with broader local and state efforts to regulate data center development, including a proposed ordinance by Mayor Dominick Pangallo to prohibit data centers in Salem and an executive order from Gov. Maura Healey restricting new data centers statewide.
Prime Group Holdings CEO Robert Moser maintained that the facility would provide crucial infrastructure for local companies, despite residents' and officials' concerns about its resemblance to a data center. The initial permit for an 8,691-square-foot IT services company was revoked after building inspectors discovered revised plans for a larger artificial intelligence data center, including more IT infrastructure, 6 megawatts of generators, and chilled-water storage tanks. It is unclear if Prime Group plans to appeal the ZBA's ruling.