New York Governor's Order and Lawsuit Threaten STAMP Data Center Project
New York Governor Kathy Hochul has enacted a one-year moratorium on new data center approvals via executive order, directly impacting Stream Data Centers' proposed project at the STAMP industrial park in Genesee County. Concurrently, the Tonawanda Seneca Nation and the Sierra Club have filed a lawsuit challenging the legality of the underlying zoning agreement for the entire industrial park. These actions also come with a proposal to end all tax subsidies for data centers.
The future of a large data center proposed by Stream Data Centers at the STAMP industrial park in Genesee County, New York, is now uncertain following two significant developments. Governor Kathy Hochul issued an executive order placing a one-year moratorium on new data center approvals, which directly halts the Stream Data Centers project in the Town of Alabama. This order also includes a proposal to repeal state and local sales tax abatements for data centers, a move that could impact Stream Data Centers' requested $1.46 billion tax incentive package.
Adding to the project's challenges, the Tonawanda Seneca Nation and the Sierra Club filed a lawsuit against the Genesee County Economic Development Center (GCEDC) and Town of Alabama officials. The lawsuit, filed in State Supreme Court in Genesee County, alleges that the 2012 incentive zoning agreement underpinning the STAMP industrial park is illegal under state law, as it effectively removed the town's discretion over zoning for 1,250 acres of agricultural land. The Tonawanda Seneca Nation, whose territory abuts the park, welcomed Governor Hochul's order and has urged a full environmental study, citing concerns about impacts on water, air, wildlife, utility rates, and quality of life.
Environmental permitting issues also persist, with the New York State Department of Environmental Conservation (DEC) requiring a wetlands study before considering stormwater discharge permits, a point of contention with the GCEDC. The DEC has also requested a noise study to assess potential impacts on the Tonawanda Seneca Nation's territory. These combined actions represent a significant hurdle for the STAMP project and the GCEDC's long-standing efforts to develop the industrial park.