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The Data Center Divide

Town of Niagara

Pro-Data Center Policies

New York exempts qualifying data centers from sales taxes on certain equipment and services, subject to security and web-hosting conditions. An enacted order is also described as pausing some state environmental permits for new or expanded centers pending review, while excluding local permits and existing operations.

Rating and summary from New York statewide as there are no scored current or future laws outside temporary restrictions for Town of Niagara.

expired · Town of Niagara
Establishes a one-year moratorium, extendable in six-month increments up to two years, prohibiting Town approval of new data processing centers, cryptocurrency mining operations, and battery energy storage systems and expansions of already-approved data processing centers involving specified large-scale electronic activities.New York Local Law No. 3-2025 (Town of Niagara), Article XVIII

What this means

The moratorium would stop new data-processing centers and expansion of already approved centers for one year, with extensions allowed up to two years total (no new projects or expansions). That temporary pause would make development substantially harder, even though the source notes the moratorium expired on September 17, 2025 (expired 9-17-2025).

Timing

Ends
Sep 17, 2025

The one-year moratorium on new data processing centers, cryptocurrency mining operations, battery energy storage systems, and certain expansions expired on 2025-09-17. It could be extended in six-month intervals, up to a maximum total period of two years. All other zoning provisions remain.

People behind it

  • Adopted and administered the one-year moratorium on new data processing centers, cryptocurrency mining operations, and battery energy storage systems.

Restrictions & requirementsHide restrictions & requirements6
  • The zoning code defines a data center as an establishment for storing, managing, processing, or transmitting digital data, but does not list data centers as a permitted or specially permitted use in the Master Land Use Table. Uses not listed in the table are expressly prohibited.

  • A moratorium barred approval of new data-processing-center projects and expansion of existing approved data-processing centers, including cryptocurrency mining, blockchain authentication, artificial-intelligence processing, general data computing, processing and storage, and similar large-scale electronic centers. The moratorium lasted one year, could be extended in six-month increments for up to two years total, and the source states that it expired on September 17, 2025.

  • In districts other than residential districts, new construction exceeding 650 square feet or $5,000 in total cost requires site-plan review and Town Board approval; smaller projects may be reviewed by the Building Inspector, but must be referred for site-plan review if they would substantially affect drainage or the Comprehensive Plan.

  • Data-center construction or structural alteration requires a building permit, and the premises cannot be occupied or used until a certificate of occupancy is issued.

  • Applicants may be required to reimburse the Town for engineering, planning, legal, technical, environmental, and other consultant costs, and must deposit an escrow before an application requiring consultant review is deemed complete.

  • Projects subject to the stormwater rules cannot be reviewed or commenced without an approved stormwater pollution prevention plan when the activity falls under the State construction-stormwater permit requirements; the applicant may also incur review, inspection, performance-guarantee, and maintenance costs.

Sources

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