Holyoke councilors mull data center ban as developer seeks former complex

Holyoke councilors mull data center ban as developer seeks former complex

News ClipWAMC·Holyoke, Hampden County, MA·6/16/2026

Holyoke, Massachusetts City Council is considering a ban on data centers amidst strong public opposition to a proposed 20-megawatt facility by Chestnut River Power and Infrastructure. Residents are raising concerns about water usage, PFAS contamination, and electricity grid strain, while the developer claims their project would use minimal municipal water and be revenue-positive for the city.

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Gov: Holyoke City Council, Ordinance Committee, Holyoke Gas and Electric

The Holyoke City Council is poised to consider a ban on data centers following a committee's advancement of an amended ordinance. This comes amid significant public opposition and rallies against a proposed 20-megawatt "micro facility" by Boston-based Chestnut River Power and Infrastructure at the former Hampden Papers complex on Water Street. Residents, including environmental scientist Remy Burnham, express concerns about potential PFAS contamination in drinking water and the overall impact on municipal resources, including electricity and water supply.

Benjamin Marshall, Co-Managing Director of Chestnut River Power and Infrastructure, addresses these concerns, stating the facility would use little to no municipal water through a closed-loop cooling system and that Holyoke's water supply is sufficient. He also asserts the project would cover its own power costs through a dedicated agreement with Holyoke Gas and Electric, potentially generating $2 million in annual property tax revenue. Marshall emphasizes that the project is in the planning phase and they are open to adjustments, urging the council to base decisions on accurate information rather than fear.

Despite the developer's assurances, protesters, like Holyoke native Rosa Goncalves, question the long-term impact on power and water systems, even with closed-loop cooling. Ward 5 Councilor Linda Vacon, the lone committee dissenter, cited the existing Massachusetts Green High Performance Computing Center as a successful case study. Committee Chair and Council Vice President Meg McGrath-Smith indicated the council plans to form a committee to thoroughly study the issue and develop a clear permitting process to protect the city's quality of life. Mayor Joshua Garcia has compared the proposed facility's power usage and size to MGHPCC, highlighting the potential for significant tax revenue.