BY ADAM ATKINSONNorth Country This Week

POTSDAM -- Development of large data centers could be paused for a year in the town of Potsdam if a proposed moratorium is finalized following a public hearing in November.  

At their Sept. 18 meeting, Potsdam Town Board members proposed a 12-month moratorium on large-scale computing facilities, including data centers and cryptocurrency mining operations, while town officials mull how such projects should be regulated.

The proposed Local Law 2026-5 would prohibit the town from accepting, reviewing, processing or approving applications for the construction, expansion or operation of qualifying large-scale computing facilities within the town's jurisdiction outside of the villages of Potsdam and Norwood during the moratorium. 

Large-scale as defined by the law means data center facilities with an electrical demand of at least 20 megawatts or at least 50,000 square feet of gross floor area, and crypto facilities with electrical demands of at least 5 megawatts. 

A public hearing on the proposed law is set for Nov. 5 at 4:30 p.m. at the town hall on Main Street. 

"This proposal is really about planning ahead and reacting if we get an application for a large build project of this size," said Town Board Member Pat Brady, during discussion of the moratorium. Brady had initially proposed the pause on data center development to the town board a few weeks ago. 

"This is, as you know, has been becoming a major issue across the country, the state and here in the county. And, these facilities may bring in economic opportunities, but they also bring significant implications for electrical demand, infrastructure, water resources, lights, heat, cooling system, etc.," Brady said. 

He said these are the issues a proposed law would address. He added that the county legislature in June passed a law asserting local control over the siting of data centers, and that planning assistance is available from the county to towns as they craft their local laws. 

Brady said a logical next step after the town approved the law would be for the Potsdam Planning Board to work with the county planning office to develop zoning regulations and rules for data center development in the town. 

Brady said the state has also passed a state moratorium on data center development but that law does not eliminate the need for local governments to pass similar moratoriums if they choose. He said it was important that the town prepare before an application for such developments is submitted to the town, and that the current zoning regulations for Potsdam do not address facilities of this particular size.

The proposed moratorium is intended to give the board time to study potential impacts involving electrical infrastructure, utility costs, water resources, emergency services, noise, heat, cooling systems, backup generation and the rural character of the town.

During the moratorium, the board plans to review existing zoning regulations, consult with planning, engineering, utility, environmental, emergency-services and economic-development professionals, receive public comment and conduct environmental review when required, according to the resolution. 

The board also plans to consider permanent regulations addressing the siting, construction, expansion, operation, buffering, utility demand, decommissioning, emergency response and environmental impacts of large-scale computing facilities, the resolution said. 

The proposed moratorium would expire 12 months after taking effect unless repealed earlier by the Town Board. It also would terminate automatically if the town adopts permanent regulations governing large-scale computing facilities. The law would take effect immediately upon filing with the New York secretary of state.