City of Niagara Falls
Anti-Data Center Policies
Niagara Falls requires environmental review, multiple approvals, energy plans, and noise, setback, and buffer safeguards for covered projects; Blockfusion’s interim agreement limits it to 50 MW with noise restrictions and no expansion.
current law · City of Niagara FallsEstablishes the High Energy Usage Overlay District under Local Law 2022-51, adopted September 7, 2022, to accommodate high-energy businesses while mitigating noise and environmental impacts and protecting public health and safety.New York High Energy Usage Overlay District, City of Niagara Falls Zoning Code §§ 1319.5 et seq. (2022)
What this means
The agreement would let Blockfusion keep operating during review, but only at its current 50 MW capacity and subject to a noise limit; it does not allow expansion during that period (interim operating limits). The city-specific zoning rules also require environmental review and several approvals, plus energy-plan, noise, setback, and buffer requirements, making new projects and expansion meaningfully harder (required approvals).
People behind it
- Kenny Tompkins
City Council member identified as the sponsor of Resolution No. 2023 approving the draft scope, escrow agreement, noise expert retention, and settlement agreement.
- City Council of the City of Niagara Falls
Lead agency for the Project’s SEQRA review and body responsible for approving the draft scope, settlement agreement, and related escrow arrangement.
- City of Niagara Falls
Municipal party responsible for administering the High Energy Usage Overlay District, permitting process, SEQRA review, and settlement agreement.
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- Mayor
City official who negotiated the escrow agreement providing for the Applicant’s funding of the City’s independent noise consultant.
- North East Data, LLC
Project sponsor and applicant responsible for preparing the draft scope, DEIS, FEIS, and pursuing approvals for the data center and digital asset mining facility.
Restrictions & requirementsHide restrictions & requirements15
Data centers are treated as high-energy uses and may operate only within the High Energy Usage Overlay District, which is restricted to Industrial (I2) zoning districts. The overlay applies only within its designated boundaries.
The ordinance states that data centers are not legally authorized when the overlay is enacted, are not grandfathered, and may not begin or continue operations while pursuing the required approvals. None of the uses is a legally authorized use.
A data-center applicant must obtain City Council rezoning to the High Energy Usage Overlay District, Level 2 site-plan approval, and a special-use permit for each use. The rezoning process includes Planning Board and City Council public-hearing and decision procedures. Applicants must petition the City Council for rezoning.
Rezoning, site-plan, special-use-permit, and variance applications for overlay uses are classified as Type I actions under SEQRA and require a Full Environmental Assessment Form, including a qualified professional evaluation of facility sound levels and characteristics. All applications shall submit a Full Environmental Assessment Form.
Facilities must be housed in buildings compliant with the 2020 New York Existing Building Code; shipping containers, railroad cars, trailers, and similar containers cannot be used unless converted to comply with building requirements. The use of shipping containers, railroad cars, semi-truck trailers or similar storage containers is prohibited.
No facility façade may expose more than 20% of its area to apparatus such as vents, fans, or HVAC systems.
Applicants must submit an environmental and energy impact plan prepared by a New York-licensed engineer, covering energy source, anticipated consumption, mitigation, efficiency, neighborhood electrical-capacity impacts, and New York State-licensed handling of e-waste. Each applicant must provide an environmental and energy impact plan.
Noise from the entire high-energy facility may not exceed 40 dBA from 10:00 p.m. to 7:00 a.m. or during weekends, or 50 dBA at other times, measured at the nearest residential property line. It may not exceed 65 dBA at a property line adjoining Industrial zoning or 50 dBA at a property line adjoining non-Industrial zoning. Measurements must use a Type 1 or Type 2 ANSI S1.4 sound-level meter.
Noise compliance is measured using the adjoining zoning and uses in effect when the overlay application is filed, limiting the ability to rely on later changes in surrounding zoning or use.
Overlay structures must meet the greater of the underlying-zone setbacks or overlay setbacks: 40 feet front, 20 feet side, and 20 feet rear where the adjoining district is Industrial; and 50 feet front, 25 feet side, and 25 feet rear where it is not Industrial.
The closest part of any building or structure used for a data center must be at least 200 feet from Residential or Neighborhood Commercial parcels and 50 feet from Traditional Commercial, General Commercial, Downtown, or Business Park parcels.
A Certificate of Occupancy for the proposed use is required before an overlay facility may operate, and the structure must fully comply with the Uniform Code. No permitted uses may be conducted unless a Certificate of Occupancy has been issued.
Under the settlement, the applicant must prepare a DEIS after the City issues a final scope; the City has 30 calendar days to accept or reject each DEIS submission, followed by up to 31 days of public comment, then an FEIS and City findings within 30 calendar days after the FEIS. Rejection, denial of approvals, or lifting the stay can resume litigation.
Under the settlement, the applicant must pay the City's acoustic-review expenses through a $5,000 escrow within 30 business days of execution, replenish it with $2,500 deposits when the balance falls below $5,000 subject to reasonable approval, and risk suspension of the consultant's work if it does not replenish the account. Unused funds are returned after review.
During the settlement's interim period, operation is limited to ambient noise levels at the nearest residential district boundaries and the site's existing transformed capacity of 50 MW; the applicant may not transform additional electrical capacity or expand operations beyond that limit.
Benefits & exceptionsHide benefits & exceptions17
During the settlement’s interim period, Blockfusion may operate the Facility while SEQRA and permitting proceed, provided noise does not exceed ambient levels at the nearest residential district boundaries and transformed power does not exceed 50 MW.
During the interim period, the City may not require additional permits or approvals for the authorized operation, issue cease-and-desist instructions contrary to that authorization, or otherwise unreasonably interfere with the Facility’s operation.
After final SEQRA findings, the City’s boards and councils must act promptly on the Facility’s permits, variances, and other required approvals.
The Mayor’s Office must support and affirmatively speak in favor of the Facility’s applications before reviewing City boards and councils.
If acoustic studies show that Facility noise exceeds HEUOD limits but remains at or below ambient levels at the nearest residential boundaries, the City must support a variance application from the HEUOD noise limits.
The settlement establishes deadlines for environmental review: the City Council generally must review each DEIS and FEIS submission within 30 calendar days, public comment on an accepted DEIS may not exceed 31 calendar days, and final written findings are due within 30 days after the FEIS.
The Article 78 litigation is stayed while Blockfusion prepares the DEIS and completes SEQRA and permitting, allowing the Facility to proceed under the settlement without immediate litigation over the underlying regulations.
The approved DEIS scope limits the identified potentially significant environmental issue to noise; the scope states that other listed environmental impacts were found not significant or irrelevant and need not receive additional DEIS evaluation.
The Niagara Digital Campus NPD District expressly allows high-energy uses, including data centers, together with necessary and appropriate accessory utilities and utility structures.
For high-energy uses in the Niagara Digital Campus, there is no minimum off-street parking requirement.
The Niagara Digital Campus streamlines building permits by making the City’s normal first and second plan-review steps inapplicable; qualifying building-permit applications must be promptly reviewed and may not be unreasonably withheld.
Other City permits anticipated for the Niagara Digital Campus—including demolition, electrical, security and fire alarm, mechanical, plumbing, and right-of-way permits—must be promptly reviewed and may not be unreasonably withheld.
The Niagara Digital Campus ordinance provides that a certificate of occupancy or certificate of compliance must be issued upon substantial completion of a structure.
The Niagara Digital Campus ordinance permits construction and use of utilities, including underground or overhead distribution facilities, without restricting them through the district’s development standards.
For high-energy uses in the Niagara Digital Campus, the applicable noise limits are 58 dBA at night and on weekends and 65 dBA at other times at the nearest residential property, rather than the HEUOD’s 40/50 dBA residential-boundary limits.
The Niagara Digital Campus ordinance states that inconsistent City zoning-code provisions and other authorities are superseded, that the district’s provisions are to be strictly construed in favor of the NPD, and that future building-permit materials may differ from or enhance the illustrative site plan.
The Niagara Digital Campus ordinance allows fences within the district without a building permit and permits noise-attenuation walls without restriction, subject to the ordinance’s design standards.
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