North Tonawanda approves one-year moratorium extension amid AI facility concerns
The North Tonawanda Common Council approved a one-year extension of its data center moratorium due to concerns about a proposal to convert a cryptocurrency mining facility into an AI data center on Erie Avenue. Residents voiced concerns about water usage and noise, while an existing crypto facility faces ongoing legal issues over noise violations. This local action coincides with a proposed $2 billion AI data center in the neighboring Town of Tonawanda and a statewide moratorium bill awaiting the governor's signature.
The North Tonawanda Common Council has approved a one-year extension of its moratorium on data center development, responding to a proposal to convert an existing cryptocurrency mining facility on Erie Avenue into an AI data center. Mayor Austin Tylec recommended the extension to allow the city more time to understand and navigate the implications of such a development, especially given the existing facility's 'grandfathered' status.
Residents attending the council meeting commended the extension but some sought a longer pause, citing concerns about water consumption, noise, and the specific power demands of AI data centers compared to cryptocurrency operations. North Tonawanda resident Mark Polito emphasized the need for more answers, while Tom Weisbeck warned about essential water resources. Cynthia Tysick highlighted the critical need for stable power for AI, unlike less sensitive Bitcoin operations.
Adding to the local debate, a separate $2 billion AI data center has been proposed for the former Tonawanda Coke Plant site in the nearby Town of Tonawanda. Meanwhile, the current cryptocurrency facility on Erie Avenue continues to be a source of noise complaints and has received multiple citations for violating the city's noise ordinance, with these cases currently tied up in court. North Tonawanda Police Department Chief Glass noted the slow progress of these legal proceedings, with older violations still pending.
The city's action comes as the New York state legislature recently passed a bill for a statewide moratorium on new data center permits to study environmental and power grid impacts, though Governor Kathy Hochul has yet to sign it into law.