Press release/Allies of the Tonawanda Seneca Nation
Concerned local residents are urging their neighbors to attend the public hearing held by the Genesee County Economic Development Center (GCEDC) on Thursday on the financial incentives application from developer STREAM US Data Centers and its financial backer, multinational private equity giant Apollo Global Management, for $1.46 billion in sales tax and mortgage tax abatements for a sprawling data center complex at the troubled Western New York Science and Technology Advanced Manufacturing Park (STAMP) being developed by GCEDC in the town of Alabama, New York.
The hearing, which is legally required pursuant to Article 18-1 of the General Municipal Law, will be
held on Thursday, March 19 at 7pm at the Town of Alabama Fire Hall and may be one of the only
opportunities for members of the public to comment on the plan for a 500 megawatt, 2.2 million square
foot data center complex. Recent reporting finds that the subsidy package ranks among the largest ever
offered to a data center; moreover, the per job cost appears to be the highest ever offered. GCEDC would
receive over $146 million in fees from this deal.
“I oppose this plan for many reasons: it would dump pollution into our air, toxic chemicals into our water,
make 24/7 noise that would scare away deer and other wildlife in the nearby preserves, and it would make all of our energy bills go up while also knocking down our property values,” wrote Pembroke resident Adrienne Yocina in a recent letter urging fellow local residents to attend the March 19 hearing. “I think it’s a bad investment, too: we could create a lot more jobs, with a lot fewer environmental and quality of life problems, for that kind of money.”
A flurry of recent opinion pieces in local publications documents extensive opposition among GLOW
area residents to the data center proposal, with concerns focusing on the failure of GCEDC to propose
economic development projects that align with the needs and values of the community. Residents are
drawing attention to concerns with water sourcing plans, connections between Apollo Global
Management and the Epstein files, failed promises of jobs and municipal benefits, outsized environmental
risks to the adjacent Tonawanda Seneca Nation and surrounding public protected lands, STREAM’s
community engagement practices, and the use of the former Plug Power site for part of the data center
campus. Plug Power, one of only two fully confirmed tenants at STAMP, has recently confirmed its
intention to withdraw from the site. GCEDC is facing growing scrutiny for the involvement of Apollo in
the data center proposal.
“GCEDC is trying to shove a massive, noisy data center complex down our throats – a monster that will
ruin our peaceful home, pollute our air, pollute our water, scare away our wildlife, jack up our electricity
bills and drive down our property values – AND invite a multinational corporation with a terrible track
record into our community… all for very few jobs and while making a lot of profit for a Big Tech
company that GCEDC refuses to identify,” stated Town of Alabama resident Sharon Larmon. “The
STREAM / Apollo data center is a bad deal for our community. STREAM and Apollo do not have the
Town of Alabama’s best interests at heart. Neither does GCEDC. We cannot let them get away with
ruining our way of life for their corporate gain.”
The extent of local opposition, which mirrors a growing trend of communities across the country that are
rejecting data center proposals, has also received attention from national press outlets. Despite the
massive scale and potential impact of the proposed project, the March 19 public hearing marks the first
opportunity for the public to publicly comment on the project. However, neither GCEDC nor STREAM
will answer questions at the hearing.
The current incentives package revises upward an initial application from STREAM and Apollo for $801
million in subsidies and was published on GCEDC’s website less than 10 days before the public hearing.
Research overwhelmingly demonstrates that data center developers do not make siting decisions based on subsidy packages.
STREAM’s new plan for “Project Double Reed” envisions a massive complex of three towering
structures more than 100 feet tall, occupying more than 2.2 million square feet and using more than 500
megawatts of electricity per year. The facility would burn tens of thousands of gallons of diesel fuel and
emit carbon dioxide, nitrous oxide, benzene, and other hazardous air pollutants. 500 MW is roughly the
amount of energy required to power every home in the GLOW Region for a year. Reporting suggests that
this additional load on the grid would raise power bills for local residents and consumers across the state.
STREAM’s plan also calls for onsite storage of 114,000 gallons of diesel fuel and discharge of 20,000
gallons of sanitary wastewater per day. Currently, GCEDC plans to store sanitary wastewater discharge
from operations at STAMP in a large sewage tank located onsite. Wastewater would be transported daily
by diesel truck to be dumped at a municipal wastewater facility in the Village of Oakfield.
STREAM intends to take advantage of space owned by Plug Power, which paused construction on its
green hydrogen manufacturing facility in 2023, leaving a gap in financing for the proposed STAMP
electrical substation. Despite hundreds of millions in taxpayer subsidies, Plug Power never turned a profit
and has never produced hydrogen or a single permanent job at STAMP.
STREAM’s earlier plan faced widespread opposition from local residents. The company withdrew it after
the Nation and the Sierra Club filed a lawsuit alleging violations of the State Environmental Quality
Review Act (SEQRA). The Nation’s Reservation Territory abuts one of the parcels under consideration
for a data center and its Council of Chiefs opposes industrial development at STAMP.
‘Data center’ can refer to operations ranging from cryptocurrency mining to Artificial Intelligence
processing. Data centers are well known for their massive energy demands and for producing continuous
low-frequency noise and vibrations. Scientific research establishes a link between excessive noise
exposure and harms to both public health and the health of wildlife. Data centers also produce significant
air pollution and add significant load to the energy grid, leading to higher consumer electrical bills and
increasing the frequency of blackouts and brownouts. Data centers produce few permanent jobs, rarely
remain in operation for more than 15 years, and face growing opposition from communities across the
country concerned about their noxious public health and environmental impacts.
What: Public Hearing on Requested Financial Incentives by STREAM US Data Centers and Apollo
Global Management for Proposed Data Center at WNY STAMP
When: March 19 at 7pm
Where: Town of Alabama Fire Hall (2230 Judge Rd, Basom, NY 14013)
Who: Members of the public