data centers

As more than a dozen sign-holding activists opposed to the idea looked on, the board of the Genesee County Economic Development Center voted unanimously to approve an incentive agreement with Stream U.S. Data Centers, LLC for the company to build a massive $6.3 billion facility on 60 acres at WNY STAMP.

After the vote, one woman said repeatedly, "Shame on you. Shame on you for your vote." 

Outside the conference room, as GCEDC CEO Mark Masse walked back to his office, she yelled, "Shame on you Mark Masse."

Pete Zeliff, chairman of the GCEDC board of directors, said he thinks such reactions are over-the-top and the people protesting the project are not well informed.

"They haven't chosen to read all the reports," Zeliff told The Batavian after the meeting.

He's gotten a lot of emails about the project and he read the report on the objections raised at a Feb. 3 public hearing, he said.

For example, addressing concerns about the amount of water being used by a data center project, he said, "20,000 gallons a day of water is for toilets, for waste, it's not cooling or anything like that."

The advantage of Stream, also known as project Double Reed, is that it will only use a handful of backup generators that will only be used as necessary, far fewer than the other proposed projects, so the emissions will be minimal, he said. 

He said he supported the project because of the revenue it will bring to the three affected taxing jurisdictions -- the town of Alabama, Oakfield-Alabama School District, and Genesee County.

The three jurisdictions will split $7 million in the first year alone. 

U.S. Data Center's winning bid promises to pay at least 105% of the taxable value of the property. Of the course of the 25-year PILOT agreement, it will pay $128 million in fees (after the PILOT, the property will be taxed at its assessed value).

Those fees will be important to Genesee County, County Manager Matt Landers said to The Batavian after the meeting. The county has been wrestling with how to pay for a water project.

"We are dedicating 100% of that revenue towards phase three of the water project, and that's a project that has a potential price tag of $150 million," Landers said. "Whenever we have an opportunity to capture some dedicated revenue for a project like that, we will take advantage of it. So that is definitely something that is positive coming out of this."

Landers and Zeliff also both like the job creation aspect. While the jobs per acre of the project might be fewer than another project might generate, these jobs will pay on an average $89,000 each.

"Any job that we create is great," Landers said. "I know, as a community, as a county, we have to work on getting more housing so we can take advantage of all these jobs that are coming here. Looking around our business parks, it's pretty impressive to see how many jobs they have been able to create over the years. The challenge now is to make sure we have some housing for those jobs. I believe over 100 jobs are being created. That is good to see. I look forward to hopefully the next projects having even more jobs."

The local economy needs those 122 jobs, especially at that pay scale, Zeliff said.

"That's way above normal in Genesee County, Zeliff said. "There were people at the meeting talking about how they want their children to be able to walk through the refuge but this project is not going to affect the refuge. This is a project where their children can get a job when they're old enough to get a job."

Zeliff said the board and staff have done its due diligence on this project and he believes all of the environmental concerns of the opponents have been addressed.

"I really don't see a negative with the project," Zeliff said. "It's not as many jobs per acre, but they're good, well-paying jobs for the county of Genesee."

At Wednesday's WNY STAMP Committee meeting, Masse made the case for Stream Data Centers.

The water district project was part of his pitch.

"This project will help the county cover the shortfall of the water project," Masse said. "It will help maintain rates for all Genesee County residents for water. It will help the health and welfare of all county residents through the water project."

He also said the project is in line with DEC regulations. The noise levels are within the standards set by the environmental review process in 2012. The project is allowed under the 2012 site plan. There is no discharge of heated water. It won't affect the reliability of the power grid nor lead to an increase in rates. It has low air emissions. And, no wetlands will be impacted by the project.

Masse said it also uses far less water than the other two proposed projects.

It was also the only project with an agreement with a Fortune 500 company to lease 100 percent of the data center once it's operational.

"Rampart had promised the highest PILOT payment for three projects, but community members made it clear that money should not be the only factor taken into consideration for this process," Masse said to the committee. "Our job was to determine which project was the best for the community and STAMP, and based on the information provided to us by the three projects, Project Double Reed will have the smallest environmental impact and will best address concerns expressed by the Nation with respect to visual and noise impacts and with respect to local benefits."

The case for Double Reed is also made in the resolution approving the project.

The resolution states:

The agency has determined that the two other competing proposals are not the most advantageous to the State, and that it would be in the public interest to reject the proposals submitted by Potentia Holdings, LLC (hereinafter referred to as "Project Hydroscale") and Project Rampart, LLC (hereinafter referred to as "Project Rampart"), respectively,''' because, among other things, those proposals" prospective profitability is speculative and implementing either proposal is anticipated to yield adverse environmental impacts discussed herein.

GCEDC staff also found the owners of Project Double Reed easier to work with, that the planners demonstrated the greatest "good faith" effort throughout the application process. Project Hydroscale kept changing its proposal, according to the resolution, even after the deadline for changes.

The troubling aspect of Project Rampart's team, the proposal states, is threats of litigation and "other bad behavior trying to manipulate the review of the application."

The resolution states, "Project Rampart’s actions throughout the application review process have indicated that Project Rampart would be unable to have a productive relationship with the Agency and other STAMP stakeholders."

The resolution also states, "Project Double Reed is pledging the highest capital investment at $6.3 billion, with Project Hydroscale at $5.4 billion, and Project Rampart at $3.3 billion."

Project Double Reed pledged an $18 million purchase price for the 60 acres it will acquire.

While the PILOT agreement for Stream U.S. Data Centers is unusual in that the company will pay more in fees than it would in property taxes without a PILOT, the company is receiving an abatement on sales taxes for construction and equipment not to exceed $462,560,000 based on the first $5,782,000,000 invested. 

That sales tax incentive is about 7% of the first year in fees it will pay to local taxing jurisdictions.

It will also receive a $9 million break on the mortgage recording tax, which wouldn't be charged without the purchase of the property.

Previously: 

• Dozens of speakers tell GCEDC proposed data centers pose big environmental threat for little economic gain
• Q&A: GCEDC CEO discusses environmental issues raised at data centers public hearing

Statement from Pete Zeliff, WNY STAMP Committee Chairman at GCEDC:

“The Genesee County Economic Development Center (GCEDC) STAMP Committee unanimously approved a motion at our March 5, 2025 meeting recommending the GCEDC Board approve both a SEQR resolution and final resolution from STREAM US Data Centers, LLC to build a new data center at STAMP.

“The decision to make this recommendation was after a thorough review of public comments from the public hearings held in the town of Alabama on February 3, 2025 as well as extensive analysis by the STAMP Committee, GCEDC staff and members from the STAMP technical team which is comprised of legal, engineering and environmental professionals. 

“In making this recommendation to the GCEDC board, the STAMP Committee followed a deliberative process as we always do. We reviewed the three data center projects’ final and best offer, after which an initial resolution was adopted to schedule a public hearing for comments specific to each project. After the public hearing, we reviewed the public comments and responses to each relevant comment, which were elaborated upon in the staff and technical team reports.

“In assessing each project, we considered several factors, including the number of good-paying jobs that would be created, the footprint of the project, including electric and water needs and impacts on the local community. 

“We also assessed which project would have the least impact on the STAMP’s capacity to bring advanced manufacturing and semiconductor supply chain companies that we are targeting for STAMP and the subsequent jobs and capital investment.

“The STAMP Committee concluded that the project proposed by STREAM US Data Centers, LLC had the fewest impacts, particularly from an environmental standpoint, and provided the best overall fit at the STAMP site.

Statement from a group calling itself Allies of Tonawanda Seneca Nation:

GCEDC Board of Directors Votes Today on Approvals for Project Double Reed and Accompanying SEQR Resolution Despite Strong Regional Opposition  

Residents of Western New York are expressing concern over the Genesee Economic Development Center (GCEDC) Board of Directors' plan to vote on resolutions approving the data center codenamed Project Double Reed and an accompanying State Environmental Quality Review (SEQR) resolution at their 4pm meeting this afternoon. The GCEDC STAMP Committee voted yesterday to approve the staff’s recommendation in favor of Project Double Reed and also instructed the staff to prepare the accompanying SEQR resolution. Announcement of the votes and publication of the accompanying documents did not appear on GCEDC’s website until mid-afternoon yesterday.

Today’s votes are taking place despite strong and ongoing public opposition to GCEDC’s efforts to site a data center at STAMP. Despite GCEDC’s efforts to minimize public participation in a rushed approval process, GCEDC received 618 comments during a poorly publicized 10-day public comment period. At the February 3 public hearings, scheduled during a Monday afternoon, dozens of speakers voiced concerns about environmental harms, quality of life issues, impacts to the Tonawanda Seneca Nation, misallocation of taxpayer dollars and misuse of low cost hydropower, as well the agency’s repeated refusal to answer basic questions about the project applicants. Since the official comment period ended, GCEDC has received more than 702 comments in opposition, including 323 opposing the approval of Project Double Reed since Monday, March 3. 

GCEDC has also refused repeated requests from the Tonawanda Seneca Nation Council of Chiefs for a new set of hearings, even though the February 3 hearings were held during the Nation’s Midwinter Ceremonies. The Nation has raised extensive concerns about the SEQR environmental review process, for which GCEDC is acting as lead agency. GCEDC has dismissed those concerns in a SEQR resolution, which finds that Project Double Reed will not have a significant adverse impact upon public health that was not analyzed in the original 2012 STAMP Environmental Impact Statement. The Nation has consistently criticized this document as profoundly inadequate and out of date. 

Among the three data centers currently under consideration for the WNY Science and Technology Advanced Manufacturing Park (STAMP) mega industrial site, Double Reed has requested the largest amount in tax breaks - $472 million in combined sales and mortgage tax exemptions. Double Reed is projected to produce 122 jobs, for a per job subsidy of $3.9 million. According to the GCEDC staff report, these subsidies would potentially be directed to a Fortune 50 company worth $100,000,000,000.

Backed by STREAM U.S. Data Centers, Double Reed will use 250 megawatts of electricity per year - significantly more than either competitor. This electricity would be drawn primarily from low-cost Niagara River hydropower, which the New York Power Authority (NYPA) allocates to STAMP even though the site lies outside the designated radius for this subsidy. In addition, Double Reed would have the potential to burn over 20,000 gallons of diesel fuel per day. 

According to their report, GCEDC staff chose Double Reed despite its high energy usage and requested tax breaks because the other two applications lack credibility and would have faced significant challenges and delays in obtaining permits. However, the staff also acknowledges that Double Reed lacks a firm commitment from a tenant, meaning it is not known what company would locate there, when, or what its operations might entail. 

Despite 15 years of effort and more than $410 million in taxpayer subsidies, GCEDC has struggled to attract viable tenants or construct basic infrastructure at the rural site proposed to become a “mega industrial park.” The agency pivoted to data centers to fill a gap in financing for the onsite electrical substation following the withdrawal of funding from Plug Power, which paused construction on its green hydrogen manufacturing facility in 2023. Each of the three data center applicants pledged contributions toward completion of the substation; Double Reed would pay $50 million. Its requested $3.9 million per job approaches the $4.3 million per job allocated to Plug Power. Edwards Vacuum is the only tenant under construction at STAMP.

GCEDC has not filed a new permit application for the proposed “Big Water” pipeline that would bring 6 million gallons of water daily to the site from the Niagara River, raising questions about the source of Double Reed’s proposed 10,000 gallons of water per day. The NYS Department of Environmental Conservation Region 8 Office rejected GCEDC’s previous application as incomplete in August 2024. GCEDC recently filed a Basis of Design Report for a reroute of the Wastewater Treatment Pipeline that would pump raw sewage from STAMP uphill and under multiple waterways to the Oakfield Wastewater Treatment Facility; treated wastewater would be discharged into a tributary of Oak Orchard Creek. Construction of the original pipeline was halted in September 2023 following fracouts of 500-700 gallons of hydraulic drilling fluid into the Iroquois National Wildlife Refuge. 

‘Data center’ is a generic term that can refer to operations ranging from cryptocurrency mining to Artificial Intelligence processing. Data centers create minimal jobs, use massive amounts of water and energy, and face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.  

“We are confident that STREAM US Data Centers, LLC will provide all the taxing jurisdictions with significant financial benefits making it a transformative project for our region while further enhancing economic development opportunities at STAMP.”

Press release:

Statement from Mark Masse, CEO of the Genesee County Economic Development Center:

“The Genesee County Economic Development Center staff and the STAMP technical team, which is comprised of legal, engineering and environmental professionals are recommending that the GCEDC Board of Directors advance a proposal from STREAM US Data Centers, LLC to build a new data center at STAMP. 

“The first step in this process is for the GCEDC STAMP Committee to review all the supporting materials that accompany the recommendation to the Board, and if they agree with the conclusion, approve moving the recommendation to the full Board at the March 6, 2025 Board meeting. This matter will be discussed at the STAMP Committee meeting on Wednesday, March 5, 2025.

“The staff and technical team assessed several factors in our recommendation to the Board, including thorough review of the responses to relevant comments raised at the February 3, 2025 public hearing. We also took into consideration the number of good-paying jobs that would be created, the footprint of the project, including electric and water needs and impacts on the local community. 

“Another factor that was considered in our recommendation was which project would have the least impact to the STAMP footprint as GCEDC staff continues to focus on bringing advanced manufacturing and semiconductor supply chain companies to STAMP.

“Staff ultimately concluded, in close consultation with the technical team, that STREAM US Data Centers, LLC project had the fewest impacts, particularly from an environmental standpoint, and provided the best overall fit at the STAMP site.

“GCEDC staff and the technical will be prepared to discuss our recommendation to the GCEDC board at the March 5^th STAMP Committee meeting.”

Statement from a group calling itself Allies of Tonawanda Seneca Nation:

Local residents are highlighting the Genesee Economic Development Center (GCEDC) staff’s recommendation to approve the data center codenamed Project Double Reed. The GCEDC STAMP Committee will vote on this recommendation, as well as the staff’s recommendation to prepare a State Environmental Quality Review (SEQR) resolution for Double Reed, at a meeting on March 5. The full Board meets on March 6. 

Among the three data centers currently under consideration for the WNY Science and Technology Advanced Manufacturing Park (STAMP) mega industrial site, Double Reed has requested the largest amount in tax breaks - $472 million in combined sales and mortgage tax exemptions. Double Reed is projected to produce 122 jobs, for a per job subsidy of $3.9 million.

Backed by STREAM U.S. Data Centers, Double Reed will use 250 megawatts of electricity per year - significantly more than either competitor. This electricity would be drawn primarily from low-cost Niagara River hydropower, which the New York Power Authority (NYPA) allocates to STAMP even though the site lies outside the designated radius for this subsidy. In addition, Double Reed would have the potential to burn over 20,000 gallons of diesel fuel per day.. 

According to their report, GCEDC staff chose Double Reed despite its high energy usage and requested tax breaks because the other two applications lack credibility and would have faced significant challenges and delays in obtaining permits. However, the staff also acknowledges that Double Reed lacks a firm commitment from a tenant, meaning it is not known what company would locate there, when, or what its operations might entail. 

GCEDC staff are advocating that the full Board approve Double Reed despite strong and ongoing opposition from residents as well as previously stated internal questions regarding the ‘fit’ of a data center at STAMP. At public hearings held on February 3, dozens of speakers voiced concerns about environmental harms, quality of life issues, impacts to the Tonawanda Seneca Nation, misallocation of taxpayer dollars and misuse of low cost hydropower, as well the agency’s repeated refusal to answer basic questions about the project applicants. GCEDC also received 618 written comments. 

Since the hearings, CEO Mark Masse has received at least 379 emails demanding that applicants conduct additional research regarding noise, traffic, hydrology, economic impacts to the Oak Orchard watershed, and EMS services. GCEDC has also refused repeated requests from the Tonawanda Seneca Nation Council of Chiefs for a new set of hearings, even though the February 3 hearings were held during the Nation’s Midwinter Ceremonies. The Nation has raised extensive concerns about the SEQR environmental review process, for which GCEDC is acting as lead agency. GCEDC appears poised to dismiss those concerns. 

Despite 15 years of effort and more than $410 million in taxpayer subsidies, GCEDC has struggled to attract viable tenants or construct basic infrastructure at the rural site proposed to become a “mega industrial park.” The agency pivoted to data centers to fill a gap in financing for the onsite electrical substation following the withdrawal of funding from Plug Power, which paused construction on its green hydrogen manufacturing facility in 2023. Each of the three data center applicants pledged contributions toward completion of the substation; Double Reed would pay $50 million. Its requested $3.9 million per job approaches the $4.3 million per job allocated to Plug Power. Edwards Vacuum is the only tenant under construction at STAMP.

GCEDC has not filed a new permit application for the proposed “Big Water” pipeline that would bring 6 million gallons of water daily to the site from the Niagara River, raising questions about the source of Double Reed’s proposed 10,000 gallons of water per day. The NYS Department of Environmental Conservation Region 8 Office rejected GCEDC’s previous application as incomplete in August 2024. GCEDC recently filed a Basis of Design Report for a reroute of the Wastewater Treatment Pipeline that would pump raw sewage from STAMP uphill and under multiple waterways to the Oakfield Wastewater Treatment Facility; treated wastewater would be discharged into a tributary of Oak Orchard Creek. Construction of the original pipeline was halted in September 2023 following fracouts of 500-700 gallons of hydraulic drilling fluid into the Iroquois National Wildlife Refuge. 

‘Data center’ is a generic term that can refer to operations ranging from cryptocurrency mining to Artificial Intelligence processing. Data centers create minimal jobs, use massive amounts of water and energy, and face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.

GCEDC STAMP Committee Meeting
March 5, 2025 at 8am 

GCEDC Board of Directors Meeting 
March 6, 2025 at 4pm 

Location: 99 MedTech Drive, Innovation Zone. Batavia, NY 14020
Meetings are open to the public. 

Last week, The Batavian met with Mark Masse, CEO of the Genesee County Economic Development Council to ask him to respond to some of the issues raised at a public hearing on potential incentives for construction of a data center in WNY STAMP.

The public hearing was held on Feb. 3 in the town of Alabama.

More than two dozen people spoke, raising a range of objections to the construction of a data center on the site.

On Thursday, the GCEDC board may consider whether one of three potential projects -- from STREAM U.S. Data Centers, LLC, Project Rampart, LLC, or Potentia Holdings, LLC -- should be welcomed into the technology park.

Q. We asked Masse to respond to the appearance that the data center projects don't seem to generate as many jobs per square foot as a project like Edwards Vaccum.
Masse: "I think if you look at the average salary, I think these jobs are in the triple digits, $100,000 average, $80,000 to $100,000. With the way technology is going in AI, I think that those are high-value, high-technology jobs. Now, are those the number of jobs that we would like to see? And again, all of these applicants are very conservative on their numbers, because they're concerned about clawback and not meeting numbers. So our anticipation is they would come in higher than what they pledged, but what they pledged is a number that they feel is easily achievable for them. And data centers were proposed way back in 2012 as one of the original uses at the site, along with all of the other advanced manufacturing when we did the technology districts.

Q. Data centers have been controversial in other communities. People mentioned North Tonawanda. Have you looked at those data centers and how they've been received in those communities, and whether that's a concern for you?
Masse: "I think it really depends upon a lot of variety of factors. So our board has been very clear that they don't want any crypto or any bitcoin, absolutely none. And if you look at a lot of the louder, noisier ones, they tend to be the crypto Bitcoin operations. So we would actually put into the documents that if we come to find out you're doing Bitcoin or crypto, we would terminate benefits and claw back. And that clawback would obviously include a very significant sales tax exemption, so we feel pretty good about the penalties that would be in place, but our board's been adamant that we don't want crypto in that technology has also come a long way. And I don't think the building in Tonawanda was originally built as a data center. It was an adaptive reuse. So the facility that they're going to be building (in STAMP) is going to be brand new. It'll have all of the lessons learned from previous projects, such as noise mitigation and things like that. So we anticipate it to fit within the parameters of what was analyzed for the EIS, and we would anticipate them to propose and follow through on any potential mitigation that we would suggest for noise or that the town board planning board may suggest for noise. If we decide to go through our board would decide on either one or none. I think there's no desire to do more than one data center at STAMP."

Q. What about excessive greenhouse gas emissions?
Masse: "Again, we've done our analysis on the air emission side of that. We're following all of the permitting requirements by the DEC. The GCEDC does not meet the definition of a state agency under the CLCPA guidelines, but we do an analysis for that under the CLCPA, and the DEC would also do an analysis of that if a company were to move forward with air permitting. So we feel that it's within the parameters that would have been previously analyzed under the EIS, and that any of those air emissions would be permitted through the DEC process."

Q. One speaker spoke about hydrology in the region, in the wetlands and surrounding areas. What are the concerns there that you are looking at? What is your response?
Masse: "Again, the sanitary sewer would be force main discharged into the village of Oakfield wastewater treatment facility where it would be treated and discharged. Any on-site stormwater would be captured on-site. The DEC requirements for that are that the water can't flow off of the site at any greater rate after development than it did before development, so any cause concerns for flooding or things like that wouldn't happen. And they do enforce bioswales, green infrastructure, and things like that to ensure that the water quality on site is maintained. If there is runoff from parking lots or things like that, that it's contained on-site and treated on site before any of that would be potentially discharged."

Q. A letter read at the hearing stated that the project contradicts New York State's international commitments to environmental sustainability, social responsibility, and long-term stewardship of the wetlands. Any response?
Masse: "So again, everybody seems to be talking about the wetlands on site, as if they are like a wildlife refuge. This is agricultural land that has been farmed for a number of years. Our EIS originally proposed only impacting, I think, nine acres of wetlands, and then when we revised it. We're down to six, and they are classified as wetlands. But if you go out there, a lot of them are just drainage ditches through fields, a depressed area in a field. That's not year-round; they dry out, so I don't understand. And same thing when they talk about like pristine habitat. It's been farm fields. It's been farmed. It hasn't been good habitat. They rotate crops. Many of the crops there are not what the birds would use to do their hunting. So again, it's been farm fields for over 200 years. We do comply with all regulations that are out there. We've had a jurisdictional determination done between Army Corps as far as what wetlands they take jurisdiction over. We're complying with all of those. That was last updated in 2023, I think, and they're good for five years. I know the state regs are changing where they're going to drop their jurisdiction to anything greater than seven acres, but that doesn't affect what we're doing on-site. So, again, I understand their concerns, but I just don't think they understand the land that's out there and what it really is."

Q. People mentioned the Big Woods (on the reservation). Does that the neighbor the site, or is it just close by?
"If you look on the map there, you see the power line kind of rerouted. The yellow area is 310 acres; if you go directly to the west at the edge of that line, that is the Big Wood. So that power line reroute, there'll be no development to the west of that. That's a 115 kV line, and we rerouted it that way to help provide a visual buffer so you can't go past that, so to speak. And as part of our agreement, the settlement agreement with the nation, we did provide for the green area, basically, aside from that 80 acres on the south, the majority of that green area there is a buffer area and wetlands that are basically not going to be touched, so that's just going to be grown forever wild."

Q. There was a statement that a data center will consume 200 megawatts of electricity annually, training the regional system, and the center would use 800,000 gallons of fresh water daily. Are those numbers accurate? Are those legitimate concerns?
Masse: "As far as the power goes, it's not going to strain the system. Anybody in New York State who tries to draw down more than 10 megawatts off of any power line anywhere is required to undertake a study with a New York independent system operator, where they will take your request and they will do an analysis of the entire grid and bring in all the operators, so National Grid. RG&E NYSEG, NextEra, and they'll run a model to say, if you were to draw X amount of megawatts off, how does that affect everything in the system? And if it requires some improvements in what they call remote ends or other substations before you draw down the power. Those improvements have to be made. So we did two different studies, each one for 300 megawatts, and it took us about four to five years to get through that study. So the NYISO has given us, I think, there was $6 million of potential improvements at a station up in Rochester, and that was it for us to get the 600 megawatts. So, according to the NYISO and the study they've run, there is no degradation or problem on the overall grid to draw down 600 megawatts. Those studies are all being done in conjunction with a lot of solar projects because they're trying to put power on the lines while we're trying to draw it off. So, all of those are being taken into consideration across the state in various studies at various times. So as far as the power not being available, it's there. The NYISO has confirmed it for us. And as far as causing issues on the grid, it will not. 

"As for us, the 800,000 gallons per day of water, that was what one applicant put in with their first application. After reviewing and discussing with them, they came back with a revised, I think, 30,000 gallons per day. So, all three of them are probably between 20,000 and 30,000 gallons per day of water, which is not a significant use. A lot of them are going with closed-loop cooling systems. The ambient air temperature here obviously is very helpful for them to be able to use air for cooling."

Q. Evelyn Wackett brought up threatened species, the short-eared owl, northern Harrier Hawk, monarch butterfly and bog turtles, any threats to these species?
Masse: "We did receive what's called a part 182 incidental take permit. We did propose a net conservation benefit. So, we created 58 acres of grassland habitat on the site that'll be maintained in perpetuity. Part of that will be a 33 acre site that'll be turned over to the DEC to be merged into the John White game farm, as far as the others, they were not identified in any of the studies we've done. I do know that as part of the construction of the substation, there is a berm there, and I've talked to our environmental company about using that berm as a pollinator field, specifically to help monarch butterflies and other pollinators. It'll also help us maintain that berm and also give it more coverage on that as well."

Q. One of the more dramatic moments, Kristen Moser, with her recording from in the Big Woods of birds and then a truck going by. What do you say to that?
Masse: "Number one, it's hard because I don't know her data points, right? I don't know where you were when you did the recording or what time of day. It's hard to say any of that. I mean, if you go to (Route) 77, there's heavy truck traffic on 77 all day long, coming up and down that road. So there's not much I could really comment on that without knowing more details about where those recordings were taken and what the time was and the distances involved."

Q. I think she's equating the truck traffic that's there for construction with -- and we've kind of discussed already -- the sound issue of the plants.
Masse: "My question would be, I don't know where she was when she recorded the truck traffic. That's the point. If she was in the Big Woods, I doubt it because all truck traffic right now comes in off STAMP Drive and then goes right down the hammerhead to the Edwards site. You know, the town has received some complaints from some truck traffic coming down the north end of Crosby. I think those were mainly concrete trucks or gravel trucks coming from Orleans County down Salt Works Road. So the town made sure that they've got to come around and come in off a 77."

Q. More than one speaker questioned whether public funds should e used to incentivize uncertain benefits, without first conducting an independent economic analysis of costs and benefits. Response?
Masse: "First of all, this is a common misconception. Public funds are not being invested in this. Companies do not receive cash. They receive abatements of taxes that they would normally pay. In this particular case, two of the three data centers would be paying about 105% to 110% of the property tax rate under a pilot. They would get a PILOT, but they would be paying more than market rate for what the property taxes are. The significant abatement is the sales tax exemption. Now, what people probably also don't realize is that in 2012, the New York State Department of Taxation and Finance issued an opinion that servers are tax-exempt from sales tax. If I think something along the lines of, if a company is using the internet, broadband is part of it. So basically, that was done to, I think, attract the Yahoo facility up to Lockport. Now, if data centers start becoming extremely interested in New York State, there is a chance that the Department of Taxation and Finance could revise that opinion and say that servers are tax-exempt altogether, in which case it's a moot point. So my guess is that these companies would ask for the abatement, and then they would probably apply to the Department of Taxation and Finance for an opinion, and if the opinion comes back and says they're tax-exempt, then really all we've given up is a mortgage tax exemption to get somebody to pay 110 or 105% property taxes on the site."

Q. They're paying 110% of the property tax rate?
Masse: "We do a fixed dollar pilot, so we calculate based on the square footage and choose a rate per square foot. We actually had the companies make us their offers. So they independently submitted their final investment offers, and it was calculated on a per square foot basis, times the square footage. And then there was, and I think some of them had an escalation rate every year, whether it was two, two and a half percent, something like that. So it would start at a fixed dollar, and then it would go up after that. So when we do a fixed dollar pilot, they pay the dollar value in the pilot. It's not 10% or 100% of whatever the current value is, which is what some of them are when they do the abatement."

Q. Okay, so, I guess I'm kind of confused. If they're paying more, they're paying what their taxes would be without the pilots ... 
Masse: "They're paying more than what the taxes would be."

Q. Without a PILOT. Why would they do that?
Masse: "That's how much they want to come to the site, and that's why power is such a scarce resource for companies like this."

Q. I know it's been the practice for GCEDC to be the lead agency, but given the the wide range of environmental concerns here, is it best for GCEDC to be lead agency on this, or should somebody else be lead agency?
Masse: "We did the original EIS, and usually whoever was the lead agency for the EIS should remain as lead agent for that. We did all the original studies. We've done the appropriate ones. And again, we're required as lead agency to send out a notice every time we want to re-establish ourselves. It goes out to all interested, involved agencies, which includes the Army Corps of Engineers and the DEC. We receive comments from the Army Corps and DEC on any of the SEQR analyses we do; they get copies of it. So, there is appropriate other parties that have a significant investment and interest in the site, who are actively involved in the review and commenting on the overall environmental review."

Q. How does the general public have confidence that all the environmental concerns have been addressed through the SEQR process?
Masse: "We have at least 7,000 pages of studies, reports, documentation, comments from DEC, and responses to DEC. And again, at the end of the day, any company that wants to build there has to get a permit from the DEC. So if there were something inappropriate or something that wasn't there, then the DEC probably wouldn't issue a permit. We would hope we would hear if they had concerns before that. And again, they've expressed their comments on some of our SEQR things."

Press Release:

A coalition of 69 environmental, faith, human rights, and good governance groups from across New York State are demanding that three developers withdraw their applications to site a data center at the Western New York Science and Technology Advanced Manufacturing Park (STAMP). In their letters, the groups cite the threat data centers pose to regional environmental quality, local quality of life, and the sovereignty and well-being of the federally recognized Tonawanda Seneca Nation, whose Reservation Territory abuts the parcel under consideration for a data center.

The letters assert the data center proposals are “not aligned with either New York state or international commitments to environmental sustainability, social responsibility, and long-term stewardship.” Rather, placing a data center at STAMP would “move our state in the direction of further environmental injustice.” 

Signatories include the Western New York Environmental Alliance, Sierra Club Atlantic Chapter, Citizen Action of New York, Interfaith Climate Justice Community, and the NY Renews Coalition, which itself represents more than 400 environmental organizations across the state.

The coalition announces the delivery of these letters on the same day the Genesee Economic Development Center (GCEDC) plans to hold daytime public hearings on the three proposals. These hearings are required by Article 18-1 of the General Municipal Law and pertain to financial incentives proposed by GCEDC to each of the three applicants. GCEDC posted documents regarding these proposed incentives to their website at midday on Friday, January 31, which was also the deadline for the submission of written comments on said incentives. 

To date, GCEDC has refused to disclose the identities of the companies represented by the investor group applicants. The financial incentive documents offer tax exemptions in the hundreds of millions of dollars to these unknown companies. To date, STAMP has already received more than $410 million in public monies.

“I am outraged at GCEDC’s utter failure of transparency and violation of the public trust. They scheduled ‘public’ hearings on these data centers in the middle of a workday with less than two weeks’ notice and then quietly buried information about proposed giveaways of hundreds of millions of taxpayer dollars to an obscure part of their website on the last business day before hearing public comment on these subsidies - which, I’ll add, would be directed to operations that will harm our shared environment and destroy our local quality of life,” said Margaret Wooster, one of the letter drafters and a Board Member of the Western New York Environmental Alliance. “This is shameful. Clearly, GCEDC does not actually want to know what we think about these incentives. Subsidies to a data center will not benefit the public: every person who pays taxes, breathes air, and drinks water in Western New York should be angry.”

‘Data center’ is a generic term  referring to operations ranging from cryptocurrency mining to Artificial Intelligence processing. As the coalition’s letter outlines, data centers are well known for their massive energy demands - in the case of the three applications under consideration, between 195-250 MW of electricity per year - and their use of vast quantities of water. One of the applicants, Project Rampart, would include a ten million gallon holding pond.

Data Centers produce continuous, jet-engine-like noise that can be heard up to eight miles away. Scientific research establishes a link between excessive noise exposure and harms to both public health and the health of wildlife. Data centers also produce significant air pollution and large quantities of e-waste. Their strain to the energy grid can increase the frequency of blackouts and brownouts. The building of new infrastructure needed to service data centers is associated with consumer energy rate increases. Data centers produce few permanent jobs and rarely remain in operation for more than 10-15 years.

Data centers face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.

Data centers are big, noisy, use too much energy, and pose a risk to watersheds, more than two dozen speakers told the staff of the Genesee County Economic Development Center at three public hearings on Monday in the town of Alabama.

The hearing was held at the rec hall of the Alabama Volunteer Fire Department and was attended by more than 50 people. Some brought signs or wore T-shirts expressing their opposition to locating a data center at WNY STAMP.

They came from Syracuse, Buffalo, Rochester, Niagara County, Orleans County, and Genesee County, including the Tonawanda Seneca Indian Reservation.

The proposed projects are massive -- all more than 750,000 square feet, or more than 13 football fields -- and will range in cost from $2.2 billion to $6.32 billion. They would each create from 100 to 200 jobs.

The three projects are STREAM U.S. Data Centers, LLC, Project Rampart, LLC, Potentia Holdings, LLC.

Exactly what kind of data the proposed centers would store and retrieve is unclear, but data centers typically provide services for artificial intelligence, cryptocurrency data mining, data analytics and storage, IT and telecommunications, and co-location services for major corporations.

Stream Realty Partners builds data centers for Fortune 500 companies. PRP Real Estate Investment Management backs Project Rampart, and its clients include Meta (Facebook), Microsoft, and Amazon.  Potentia Capital is an Australian private equity firm specializing in technology, software, and tech-enabled services.

These sorts of projects are usually backed by a consortium of private equity investors, often global in nature. 

CORRECTION from prior version of the story: Neither Steam nor Project Rampart are seeking property tax exemptions, just sales tax and mortgage tax exemptions.  The Stream project would generate $10.9 million in annual revenue for local municipalities and school districts, and Project Rampart, $10.3 million annually. Potentia is seeking $42.7 million in property tax exemptions over 20 years, resulting in an average of $7.1 million in annual PILOT fees.

Many speakers questioned whether data centers fit into the promised profile of WNY STAMP, which was sold to the community as a high-tech manufacturing hub, much like the Edwards Vacuum plant currently under construction.

Edwards is promising 600 jobs in a 240,000-square-foot facility, or one job per 400 square feet. Stream is projecting one job (at a salary of $89,000 annually) per 7,800 square feet, Rampart, one job ($64,000 annually per 7,142 square feet, and Potentia, one job ($129,000 annually) per 4,460 square feet.

There is only enough space available in STAMP for one of these data centers, so the GCEDC board will need to decide whether to reject all of them or pick only one of them for approval.

Data centers have been controversial in other communities, and several speakers brought up issues with the Digihost Fortistar Niagara County facility. It is a 60 MW cryptocurrency mining operation located off Erie Avenue in North Tonawanda. Residents there have protested against noise pollution, leading the city to ban the facility from expanding for two years. 

Other complaints about the facility have included excessive greenhouse gas emissions, 

There have also been complaints about noise from data centers in Loudoun County, Virginia, Granbury, Texas, and Fairfax County, Virginia.

Health concerns from data centers include stress and anxiety, hearing loss, disrupted sleep, and even cardiovascular risk.

The controversy in Niagara County about data centers may have contributed to chasing away Kevin O’Leary, of Shark Tank fame, when he sought to build a data center in the region. He claimed the project was fully funded and would have created thousands of jobs. He said he ran into significant roadblocks raised by local politicians and state policies. 

He reportedly said on CNN, "It got so bad with the politicians in the local region and the state policy, we moved it to Norway, and all the jobs. Norway has it now. Thousands of jobs coming out of that! That’s New York. Uninvestable.”

While many speakers on Monday focused on these issues, the only matter before the GCEDC board, when the projects come up for a vote, is economic -- will a data center create jobs and help grow tax revenue in Genesee County? NOTE: The environmental issues will come before the board during the SEQRA, if GCEDC is lead agency.

If approved by the board, the winning project must jump through a series of regulatory hoops, including:

• State Environmental Quality Review Act (SEQRA) compliance, which assesses potential impacts on air quality, water resources, wildlife, and other environmental factors.  GCEDC has applied for lead agency status for the SEQRA review.
• Air and Water Quality Permits, which cover air emissions and water usage.  It would be up to the Department of Environmental Conservation to provide the permits.
• The project must comply with the Climate Leadership and Community Protection Act (CLCPA), which focuses on greenhouse gas emissions. There would also be a requirement for energy consumption disclosure.
• The town of Alabama's local zoning boards and the Genesee County Planning Board would review the projects. The project would need to comply with existing noise ordinances, for example, as well as other land-use regulations. As part of the public hearing process at the local level, the developer would need to address community concerns about noise, emissions, and resource usage.

Highlights of speakers' remarks (not all speakers included):

Madeline Nyblade, an assistant professor at SUNY ESF with a Ph.D. in Earth and Environmental Sciences, specializing in hydrology.
Nyblade expressed concern about the hydrology of the region, which includes wetlands and clay-rich soils that create perched water tables. The area is upstream from critical ecosystems such as the Tonawanda Seneca Nation lands, the Tonawanda Wildlife Management Area, and the Iroquois National Wildlife Refuge, making it susceptible to downstream impacts.

“This land is wetland, part of this larger wetland complex, yet none of the proposals take into account the wetlands that will be destroyed,” she said.

Margaret Wooster, reading a letter from Allies of the Tonawanda Seneca Nation, Western New York Environmental Alliance, and 57 other environmental, faith-based, human rights, and good governance groups.
The letter states that the project contradicts New York State’s and international commitments to environmental sustainability, social responsibility, and long-term stewardship and expresses concerns about the destruction of wetlands. The data centers will consume 200 megawatts of electricity annually, straining regional energy systems, she said. The centers would also use 800,000 gallons of fresh water daily. She also raised concerns about air pollution. 

“Industrial runoff, hydrological disruptions, and heated water discharge from a data center would devastate these fragile ecosystems,” she said.

Joseph O’Malley (reading a statement by John Whitney)
The letter noted the area is a 20,000-acre network of wetlands and wildlife refuges critical to biodiversity and carbon sequestration. 

“The GCEDC STAMP site is situated in an area with deep cultural and ecological significance," the letter stated. "It is central to Western New York’s heritage, including that of the Haudenosaunee people and the Tonawanda Seneca Nation.”

It also called into question the "excessive" financial incentives given the limited number of jobs expected. 

“Public funds should not be used to incentivize these uncertain benefits, not without first conducting an independent economic analysis of the costs and benefits,” he said.

The long-term costs could outweigh any short-term financial gains, he said, especially if rapid technology advancements render the facilities obsolete in a few years. 

Dr. Kirk Scirto, a family physician who treats patients from Tonawanda Seneca Nation and is a public health specialist
He said the data centers would emit at least 500 tons of carbon dioxide annually and burn 60,000 gallons of diesel fuel per year, leading to air pollution that disproportionately affects the nearby Tonawanda Seneca Nation.  The noise, he said, would be 50–90 decibels, "akin to jet engine noise." The projects he said are a threat to The Big Woods, a key hunting ground for residents of the reservation. Water usage, he said, would deplete resources for the surrounding counties. The superheated discharge water, which could also contain toxins, could harm downstream fisheries. If the centers are used for AI, AI could lead to significant job loss throughout the United States.

"In medicine, we study how parasites suck up the nutrients or resources while harming them," Scirto said. "Well, that's exactly what these data centers are -- parasitic centers that would suck up an immense amount of the drinking water of Niagara, Orleans, Erie and Genesee county residents. They would also steal a huge amount of their energy in exchange for a barrage of contamination. What's more, hardly any jobs would be offered to local residents."

Diane Sirczyk, representing the Atlantic Chapter of the Sierra Club
"Data centers around the country are notoriously dirty and noisy consumers of vast amounts of electricity, which are straining electric grids, emitting large volumes of greenhouse gas pollution and undermining our country's ability to transition away from fossil fuels," she said.

She noted that Project Potentia, if approved, would require 195 megawatts of electricity per year, which is enough to power about 32,000 homes.

She suggested the data centers would not comply with CLCPA.

Barbara Jonathan
Jonathan said she lives near Big Woods. She expressed concern about the impact on future generations, given the potential for a negative environmental impact. She expressed concerns that the data center will have no accountability and no relationship with the local community once built. 

“Where are these people who operate these data centers? Are they going to really give a damn about you or me?” she said.

Sarah Howard, a resident of Syracuse
Howard opposed the incentives and criticized GCEDC for a "lack of transparency" and "procedural flaws." 

She expressed environmental concerns, concerns about energy consumption, and a lack of a significant number of jobs created by the projects.

“The revised EAF states no water is needed for cooling but includes an 8-acre retention pond holding 10 million gallons. This raises serious questions about transparency," she said.

Howard was the only speaker who steadfastly refused to stop talking at the end of her time limit.

Maggie Cowen (reading a statement from a person named George)
Cowen noted that wastewater from a data center could contaminate Orleans County rivers and creeks, ultimately reaching Lake Ontario and affecting its growing tourism industry, notably fishing.  Cowen noted that a data center in Niagara County generates noise levels from its cooling fans of 85 decibels. Cowen argued that a data center provides no meaningful value to the community. 

Cowen fought back tears near the end and said,  "I've got a little bit more time, so I just like to say, like, this is one of the few natural areas remaining in this region of the state, and it seems ridiculous to throw away."

Evelyn Wackett, Buffalo resident and environmentalist
The STAMP project threatens endangered and threatened species, she said, including the short-eared owl, northern harrier hawk, monarch butterfly, and bog turtles. She said a data center would draw six million gallons of water from the Niagara River daily. 

“Yesterday was World Wetlands Day," she said. "I want to celebrate the wetlands. I don’t want to see them destroyed.”

Kristen Moser, a wildlife photographer from Syracuse
Moser said these projects do not belong near the Tonawanda Seneca Nation or the surrounding wildlife refuges, including the John White Wildlife Management Area, Iroquois National Wildlife Refuge, Tonawanda Wildlife Management Area, and Oak Orchard Wildlife Management Area.

“The Big Woods is home to over 100 species of birds, many of which are dependent on undisturbed areas to reproduce,” she said.

She played a recording of birds singing in the woodlands and then a recording from the same spot when a supply truck for one of the STAMP projects passed by. The birds were silent and only the truck could be heard.

"That's what you'll be hearing if these three data centers go in," she said. "If any of this continued destruction continues, the data center would be one of the closest complexes to this exceptional forest. The sound of the trucks will be multiplied by the constant industrial sounds of the center. Noise pollution will not only impact and displace wildlife in the Big Woods, it will forever destroy the peace and serenity of this sacred land for the people of Tonawanda."

Katie Rivers, Alabama
Rivers said she has lived near the project site for 30 years. She said development has already disrupted local wildlife, particularly deer, which have been displaced from their natural habitats. She suggested economic developers and planners prioritize corporate interests over community welfare.

“It seems like you’ve all been bamboozled," Rivers said. "I can’t even imagine that you think this could be beneficial to anybody in the town.”

Angela Carlson, from Oakfield, now living in Batavia
She claimed that a cost-benefit analysis has not been produced, violating General Municipal Law 859-a. She highligned the environmental risks of the project and its potential adverse impact on threatened species such as the northern harrier and short-eared owl. 

She called on GCEDC to produce a cost-benefit analysis, disclose the names of the owners and operators of the projects, conduct a comprehensive noise study, and provide more opportunities for public participation. 

“One cannot claim to care about the environment while continuing to disregard and disrespect the rights of Indigenous peoples,” Carlson said.