State lawmakers entertain moratorium on data centers

Buffalo, NY (WBEN) State lawmakers are entertaining a proposal to place a one year moratorium on data centers. This as one moratorium is already in place.

North Tonawanda has such a moratorium already in effect. Mayor Austin Tylec says a statewide moratorium makes sense. "Obviously, we're known right now as one of these controversial spots with the data center we've had for almost five years, and I know there's one going or proposed in Tonawanda. There's something in Batavia that's up for discussion. Somerset, it just seems like everywhere you turn, they're looking at old industrial sites or old energy plants and trying to put up a data center," says Tylec. He says he's heard the assembly and senate each have separate bills for a one year moratorium.

Tylec says the main issue in his city is noise. "These pods that are there have thousandss of fans on each one, and it creates a lot of noise. So, over the years, since it was established prior to my administration, we've been trying to work with them to reduce the noise," explains Tylec. He says with the moratorium in place, one company is looking to swap out some of the fans for a closed water cooling system. "Instead of using fans to cool these systems sound, it would be water cooled in a closed system. It's understood looking at specifications that it should significantly reduce the noise, it's one of these things that they're more or less grandfathered in, and I think the state realizes that as well, that they have to look at, okay, what currently exists, who already got their permit, who's already up and running, and then what do we have to look for moving forward, anyone that is proposed doesn't have their permit, just an idea or concept."

State Senator George Borrello wonders what studies will be done if there is a statewide moratorium. "What does this moratorium do? If it's just delaying things a year, you know, I'm not sure that I would be in favor of that," says Borrello. He says the source of concern is misinformation. "I think people, what I hear is they're concerned about that it's going to raise electricity rates. That is a myth, because if you look at the number of data centers in New York, for example, we've got about 17, 120 and 130 currently, and then you look at Virginia, just the just northern Virginia for a loan has 550 data centers, not the entire state of Virginia, just northern Virginia, and their electricity rates are half of New York's. So I don't think that just based on that evidence alone, I can't see, you can see it directly tied to increasing data rates," says Borrello. "There's plenty of evidence to suggest that countries like China, who do not want to see us beat them in the AI race are actually supporting these anti-data center efforts. You're seeing money flowing in from very mysterious places, a lot of far-left leaning organizations that are ultimately linked to the enemies of the United States, like China. So, I suspect that the misinformation campaign out there is the primary goal is to get people riled up, hoping that the United States will no longer be the leader in AI, and not having data centers is going to be key in that effort to destroy America's, you know, AI leading technology," adds Borrello.

He says a moratorium could lead to missed opportunities. "I also think that you have communities that are looking at the revenue they'll be receiving, in some cases, really game-changing support to do things like major infrastructure projects, improving water and other infrastructure, and to give that one year to do nothing, and then ultimately maybe kill a project that could be transformational for community, is something I would have a concern with," notes Borrello.

He believes data center moratoriums are local matters and each community should reach its own conclusion.