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The Data Center Divide

City of North Tonawanda

This restriction takes precedence while in effect. The rating below excludes temporary restrictions.

Pro-Data Center Policies

North Tonawanda has enacted measures that pause reviews and permits for new data centers and expansions for 12 months, delaying development; existing centers are not generally stopped, and hardship exceptions may be available.

Rating from New York statewide as there are no scored current or future laws outside temporary restrictions for City of North Tonawanda.

current law · City of North Tonawanda
Establishes a two-year moratorium in North Tonawanda, approved on July 16, 2024, that bars approval of new data processing center projects and expansion of existing approved centers, including cryptocurrency-mining, blockchain-authentication, artificial-intelligence processing, and similar large-scale electronic operations.New York Local Law 2024-2 (North Tonawanda)

What this means

The measure would pause reviews and permits for covered new data-center projects for 12 months, making building or expanding substantially harder during that time. It does not generally stop existing centers from operating, and hardship exceptions may be available.

Timing

Ends
12 months from the effective date of this Local Law

The Local Law takes effect upon filing with the New York State Secretary of State. The moratorium may be further extended.

People behind it

  • Identified as a submitter of the measure.

  • Identified as a submitter of the measure.

  • Identified as a submitter of the measure.

Show 5 more peopleShow fewer people

  • Identified as a submitter of the measure.

  • Identified as a submitter of the measure.

  • Identified as Mayor and submitter of the proposed local law; also proposed the moratorium extension and recommended the Common Council proceed.

  • Identified as a submitting entity for the proposed local law.

  • Directed to send the proposed local law to the Niagara County Planning Board and adjacent municipalities for review and recommendations.

Restrictions & requirementsHide restrictions & requirements3

  • A two-year moratorium bars approval of new data processing center projects and expansions of existing centers already approved within the City. A 2026 law extends the temporary moratorium for 12 months from its effective date, prohibiting review or issuance of approvals and permits for covered new facilities and expansions, including increases in footprint, intensity, number of units, processing capacity, or infrastructure. (12-month extension)

  • An exception to the moratorium may be granted only for extraordinary hardship. Applicants must submit 10 copies, pay a filing fee set by the Building Department, and attend a public hearing. The hearing must occur within 62 days after a complete application, and the Council generally must decide within 30 days after the hearing closes, though it may take longer; delay alone is insufficient to establish hardship. (extraordinary hardship)

  • A person or entity violating the law is subject to a $1,000 penalty for each day the violation continues. (daily penalty)

Benefits & exceptionsHide benefits & exceptions1

  • The Common Council may grant an exception to the moratorium for a project if postponement would cause extraordinary hardship. The applicant must provide supporting facts and evidence, pay a filing fee, and attend a public hearing; the Council may deny, approve, or modify the request, and mere delay is not enough to establish extraordinary hardship. May authorize exceptions to the moratorium.

Sources

current law · City of North Tonawanda
Would extend North Tonawanda’s temporary moratorium for 12 months on reviewing or issuing permits for new cryptocurrency-mining and data-processing centers, including expansions and facilities used for blockchain authentication, artificial-intelligence processing, data computing, or storage, to allow zoning updates to be completed; the extension was unanimously approved by the Common Council.New York Local Law No. 3 of 2026 (North Tonawanda)

What this means

The measure would impose a 12-month moratorium on reviewing or issuing permits for new data centers and expansions, making development substantially harder during that period. It does not expressly stop existing centers from operating, and the council could grant hardship exceptions, but those limits do not offset the major delay.

Timing

Ends
12 months from the effective date of the Local Law

The moratorium then elapses and has no further force unless further extended. The effective date is upon filing with the New York State Secretary of State, so no explicit calendar expiration date is provided.

People behind it

  • Submitted the proposed local law and sponsored the twelve-month moratorium extension.

  • Introduced, considered, and approved the local law extending the moratorium.

  • Directed to transmit the proposed local law to the Niagara County Planning Board and adjacent municipalities for review and recommendations.

Restrictions & requirementsHide restrictions & requirements11

  • A 12-month moratorium applies from the law’s effective date, after which it expires unless further extended.

  • During the moratorium, no City agency, board, or official may review or issue approvals, special-use permits, variances, site-plan approvals, building permits, or other permits for cryptocurrency mining, blockchain-authentication operations, or data-processing centers.

  • The moratorium covers new data-processing centers and expansions of existing centers, including increases in physical footprint, use intensity, number of units, processing capacity, or infrastructure.

  • The covered facilities include cryptocurrency-mining operations, blockchain authentication, artificial-intelligence processing, general data computing, processing and storage, server farms, modular processor facilities, and similar large-scale electronic centers.

  • An exception requires Common Council authorization based on extraordinary hardship; mere delay during the moratorium does not qualify.

  • An extraordinary-hardship exception application requires 10 copies, detailed facts and supporting evidence, other information required by the Council, and a filing fee set by the Building Department.

  • The Common Council must hold a public hearing on a complete hardship-exception application within 62 days, then decide within 30 days after the hearing closes or within additional time needed to assess the petition.

  • A hardship exception may be granted only after the Council considers consistency with the Comprehensive Plan, neighborhood character, public health and safety, potential substantial liability or lack of a reasonable alternative, and the effect of strict compliance.

  • The Common Council has discretion to deny, approve, or approve with modifications a hardship-exception request.

  • Violating the moratorium carries a penalty of $1,000 for each day the violation continues.

  • The law supersedes specified City Code and New York State statutory provisions that would otherwise require the City to accept, process, approve, or issue permits for covered data-processing development within prescribed time periods.

Benefits & exceptionsHide benefits & exceptions2

  • The Common Council may grant an exception to the moratorium for an application when strict compliance would cause extraordinary hardship. The applicant must submit ten copies, pay a filing fee, participate in a public hearing, and satisfy criteria concerning the comprehensive plan, neighborhood and public-safety impacts, substantial monetary liability, and lack of a reasonable alternative.

  • The moratorium is temporary: it expires 12 months after the local law becomes effective unless the City further extends it. After expiration, the moratorium no longer blocks applications or permits, subject to the zoning and permitting rules then in effect.

Sources

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