Wave of municipalities move to ban data centers

A wave of municipalities in Tompkins County, New York, are moving to either limit or outright ban data center construction, spurred by a controversial proposal from Maryland-based technology company TeraWulf in the Town of Lansing. The Town of Dryden effectively banned data centers in February, and the Town of Danby followed suit in April, adopting a local law that defines data centers and excludes them as an allowed use. Officials in the Towns of Ulysses, Newfield, and Enfield are also beginning to discuss or propose similar restrictive measures. The widespread municipal action stems from concerns about the rapid pace of development in Lansing and perceived gaps in local zoning codes. Lansing's initial lack of specific data center definitions led its code enforcement officer to deem TeraWulf's project an unallowed use. TeraWulf appealed this, and the Lansing Zoning Board of Appeals overturned the determination, a decision now contested in court. Opponents of the Lansing project cite environmental impacts and potential increases in electricity costs as key concerns. Several local leaders, including Danby Town Supervisor Joel Gagnon and Enfield Town Supervisor Stephanie Redmond, support a proposed state law for a moratorium on new data center permits, noting broader concerns about data centers' impact on electricity prices, as projected by the New York State Independent System Operator (NYISO). Ulysses Town Supervisor Katelin Olson, while acknowledging her town's current unsuitability for large data centers, emphasized the need for state-level leadership and nuanced conversations around resource use, energy consumption, and environmental impacts before considering such developments. The Ulysses town board is expected to vote on restrictive zoning language in the coming weeks.