TOWN OF ALABAMA, N.Y. (WKBW) — A proposed multi-billion-dollar data center in Genesee County is facing swift pushback from residents and members of the Tonawanda Seneca Nation who are concerned about environmental impacts and energy costs.
A Texas-based company plans to build a 500-megawatt, 2.2 million-square-foot Stream data center complex at the STAMP plant in the Town of Alabama.
WATCH: 'Not being transparent': Residents oppose proposed data center in Genesee County
"I'm a resident of Genesee County and in complete opposition to this proposed AI data center," Nadine Wawrzyniec said.
The proposed site sits next to the Tonawanda Seneca Nation and the nearby Iroquois National Wildlife Refuge.
Opponents say the project could harm water and electric resources while ruining the natural environment.
"We're worried about what this data center and what the STAMP site will bring," Grandell Hallett Logan, member of the Tonawanda Seneca Nation, said. "And the big woods that we talk about that we work so hard to protect, and really, you look around in this area, it's all fields, it's all farm. And you add a data center to that mix — it's gonna change our soundscape."
"Bald eagles, short-eared owls, harriers, all kinds of animals that are going to be impacted by the steady noise and vibration and constant lights," Wawrzyniec said.
Residents are also frustrated by a lack of transparency regarding who will occupy the facility and a proposed $1.4 billion tax break for a project that will create just 125 jobs.
"They are not being transparent on which tenants will actually be running this AI data center, so we have no idea how it will be run," Wawrzyniec said.
Mark Masse, president and CEO of the Genesee County Economic Development Center, told me he cannot reveal the tenants due to a disclosure statement.
"We did not want Crypto. We do not want Bitcoin. This is not that in any way, shape or form. If it were, we would have rejected," Masse said.
I asked Masse about those tax breaks.
"How do you respond to that?" I asked.
"They're going to start out in year one paying at 115% of what the assessed value is, and then there's going to be a 2% escalator on that over the 30 year period. So over 30 years, our county, our town and our school district will receive $285 million, which is incredibly substantial for our community and for those municipalities," Masse said. "Just the property taxes and sales taxes alone will bring half a billion dollars directly to the three municipalities in our county that would affect this."
The project remains under a New York State Environmental Quality Review known as the SEQR process.
Masse did respond to those residential concerns about changes to the environment, water and electrical usage. He claims the data center will not harm things, but here is his full explanation on those topics:
ENVIRONMENTAL ISSUES/NOISE:
"Back in 2012, when the zoning was completed, and the site was rezoned, we had completed an environmental impact statement where we analyzed the potential full build out of the site of 6.4 million square feet data center was a proposed use at that time, including a bunch of other proposed uses. It is an allowable use in the technology district for zoning. You know, obviously, we understand noise is a major concern. The company has submitted its noise or acoustic study. We have hired an independent, independent consultant to review that acoustic study to ensure that they can meet the requirements as listed in the EIS, which were close to what some of the baselines were out at that site, so as part of our analysis, we have to do what's called an initial assessment, where we analyze the project and we send it to the Seneca Nation for their review. Based upon that initial assessment, we do not see how this project would potentially impact them outside of the property lines of where they're located."
IMPACT ON WATER:
"The sewer would just be the sanitary sewer from bathrooms for employees that will be pumped by a force main to the Village of Oakfield wastewater treatment facility, no different than force mains that are underneath villages and cities all across the U.S. Other than that, the data center proposal has no other discharges that would come out of that. There will be stormwater management on site, where they're supposed to collect and detain the onsite water. They do use a closed loop system for their chillers on the roof, which may have a 25% glycol solution in it, but that is segregated from the sanitary sewer. There are secondary containment procedures there as well, so if there is an issue, it would all be put into drums and then trucked off for disposal. So as far as we are analyzing under their proposal, there would be no discharges from that facility that would go directly to the ground or the surrounding environment."
ELECTRIC USAGE:
"A couple of the other issues, as far as electric goes. You know, we spent the better part of five years going through having the New York independent system operators, the nice study of our request to draw down 600 megawatts for the entire stamp site. After those five years of study, they did approve us to take down 600 megawatts, and the requirement was to have some minor improvements made to a substation up in Rochester, so from their analysis, which, again, they did of their own, there are no detrimental effects to the overall grid to draw down that kind of power."
But this project is not a deal done with the town to make their own decision.
"I don't believe the town can take any action until the SEQR is completed," Masse said.
Another hearing is expected to take place. Developers hope to break ground on the project by this year, with completion in 2030.
Michael Wooten spoke with STREAM officials on VOICES about the proposed data center. You can watch their interview below.
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