TOWN OF ALABAMA — Three data centers vying to build at the STAMP industrial park in rural Genesee County are seeking subsidies worth anywhere from $838,000 to $3.9 million per job.
The proposals were the subject of three public hearings Monday at which about two dozen nearby residents voiced their strong opposition.
Concerns ran the gamut: Some speakers said data centers — via water runoff and noise — would harm the surrounding environment, which includes Tonawanda Seneca Nation territory as well as state and federally protected lands. Others said they opposed the tax breaks and still others aimed their ire at the IDA for holding such hearings in the middle of a Monday afternoon when most people are at work.
Sarah Howard, a consultant for the Tonawanda Senecas, said Nation members fear air pollution from diesel engines, water pollution from runoff and the constant noise that 24/7 data centers are known to emit.
“A data center being placed at STAMP would have a transformative impact on the neighbors of this site and the most immediate neighbors are the Tonawanda Seneca Nation,” Howard said.
The data centers would be sprawling, covering as much land as up to 15 football fields. They would also require a vast amount of electricity to power servers, meaning discounted hydropower from the New York Power Authority is a strong likelihood.
One data center developer is seeking $472 million in tax breaks and says the project will create 122 positions — equal to $3.9 million per job.
Another developer wants $238.9 million in exchange for 105 jobs — or $2.3 million per job.
The third developer wants $167.6 million in exchange for 200 jobs — equivalent to $838,000 per position.
The subsidies do not include any assistance from the state or discounted hydropower from NYPA. Other projects at STAMP have received both.
The subsidies, if granted, would come on top of about $100 million in state funding the Genesee County IDA has spent to prepare the industrial park for occupancy.
The IDA will accept only one of the proposals, according to President and CEO Mark Masse. The agency’s board of directors could also reject all three developers, he said.
It’s not clear who the ultimate user of a data center would be. Each developer is proposing to build the facility and lease the server capacity to one or more technology companies. Tom Wasko said his firm, PRP Real Estate Investment, typically leases data centers to firms like Microsoft, Meta or Amazon. PRP is behind Project Rampart.
He and another developer said the data centers could be used by companies developing artificial intelligence programs.
That point alone caused consternation at a series of public hearings Monday.
“Hardly any jobs would be offered to local residents and AI is predicted to result in massive job loss for blue-collar workers,” said Dr. Kirk Scirto, a doctor for the Tonawanda Seneca Nation.
“This would mean millions of dollars in taxpayer subsidies funding one to three parasitic centers that would actually harm taxpayers and take away their jobs,” he said.
“Anytime we see subsidies in excess of $100,000 per job, much less $2 million, it’s fair to say that taxpayers will never break even on those deals,” Greg LeRoy, a national subsidy expert and executive director of Good Jobs First, said at the time.
For more on this story, visit Investigative Post at https://tinyurl.com/3tuspj8r