Massena board rejects moratorium as data center proposal moves forward

The Massena Town Board voted 3-2 on Sept. 16 against a proposed six-month moratorium on data centers. The vote followed a public hearing with 19 speakers and came as plans advance for a large facility at the former Alcoa East/Reynolds site.

North Country Colocation Services, an affiliate of New York Digital Investment Group, has proposed a 1.5-million-square-foot data center on the shuttered industrial property. The company has said the project could create about 200 permanent jobs. Construction employment estimates range from 1,800 to 2,500 workers over about two years.

Supporters have pointed to potential jobs and sales tax revenue. Critics have raised concerns about the facility’s electricity demand and its effect on residential, business and farm users. The developer says the project would use existing approved hydroelectric power and a closed-loop cooling system.

The proposal also faces questions about a statewide pause on large data centers. Gov. Kathy Hochul signed an executive order July 14 temporarily pausing state environmental permits for large data centers for up to one year while the state Department of Public Service prepares a broader environmental study.

A developer representative said at the Sept. 16 meeting that the Massena project is exempt because it does not need additional discretionary permits from the state Department of Environmental Conservation. State reviews are still pending, including DEC and State Environmental Quality Review Act reviews. The project’s exemption status has not been confirmed by state officials.

The site plan must also go through local review. The Massena Planning Board asked the Zoning Board of Appeals whether a large data center is permitted in the industrial zone, and the St. Lawrence County Planning Board has raised questions about the plans. A Host Community Agreement would have to be negotiated if the project proceeds.

Studies required before construction are being funded in part through a $250,000 developer escrow account for consultant and review costs. The company’s website has indicated that initial construction could begin later this year, although the project’s construction schedule remains subject to the required reviews.

Alcoa closed the Massena smelter in 2014. Alcoa later reported an agreement to sell portions of the Massena East site to a data center company for up to $315 million. The Massena board’s decision leaves the local proposal without the additional six-month pause sought by residents who circulated petitions.

The governor’s statewide pause can last up to one year, with no firm end date set in the executive order. The Department of Public Service environmental study and the remaining state and local reviews will help determine what happens next.