Common Council Moves to Freeze AI Data Center Development

By BRANDON RAUL RAMIREZ
SUNY Institute for Local News
ONEONTA

The City of Oneonta Common Council took the first steps toward pausing the development of artificial intelligence data centers on May 5, as city officials expressed concerns that such high-demand facilities could overwhelm the city’s aging infrastructure.

In a unanimous show of support during the regular biweekly Common Council meeting, councilmembers directed the city attorney to draft a formal moratorium. The proposed local law would institute a temporary freeze on the construction of any new buildings primarily used for housing computer servers, providing the city time to study the environmental and logistical impacts of the burgeoning AI industry.

“We want time to study this issue so that the city can make the best possible decision about how to move forward,” said Councilmember Scott Harrington, who presided over the meeting as acting mayor in the scheduled absence of Mayor Dan Buttermann.

The move comes as municipalities across New York—including the Town of Oneonta—grapple with the rapid expansion of AI infrastructure. Oneonta city officials noted that while no formal applications have been filed, there has been recent interest from developers regarding the city’s rail yards.

Council Member Elayne Mosher Campoli, who led discussion on the measure, emphasized the need for a “proactive instead of reactive” approach.

“It’s something that is here at our doorstep,” Mosher Campoli said, referring to interest inquiries that have been fielded recently by the Otsego Now economic development agency. “Without any kind of local law, we could have somebody come in here…that would put us in a very tough position if it’s something that could be threatening to our current infrastructure.”

However, the proposal was not without debate. Council Member Don Mathisen raised concerns about the city’s ability to support such facilities, noting that large-scale AI data centers can require up to 100 megawatts of electricity and 5 million gallons of water per day.

Other councilmembers said residents had expressed strong opposition to the possibility of AI data centers locating to the Oneonta area.

Councilmember Kaytee Lipari Shue stated that the city should take a cautious approach while studying infrastructure capacity and environmental concerns.

“We are giving ourselves time to figure out how we can position the city to handle growth of any kind,” Lipari Shue said.

At the same time, Mathisen argued, “I don’t think we should shoot ourselves in the foot by saying ‘we don’t want AI data centers’ with a moratorium.”

He cautioned that a broad moratorium might inadvertently signal that Oneonta is closed to tech-driven businesses.

“We don’t want to send a message to the AI [related] businesses that we don’t want you,” Mathisen continued. “We do want people who use AI, but we don’t want an AI data center. That’s the way I see it.”

City Attorney David Merzig clarified that the moratorium would focus on new construction and would not affect existing server infrastructure at local institutions like SUNY Oneonta or Hartwick College. He also noted that a seven-day “laying” period and a State Environmental Quality Review process are required before the council can formally adopt the law.

In other business, the council cleared the way for a major summer upgrade at Wilber Park. Members approved a $475,000.00 capital project budget for splash pad improvements, a project largely funded by a $410,000.00 donation from the Oneonta Family YMCA and the Future for Oneonta Foundation. The city will contribute $65,000.00 from its Parks and Recreation Reserve.

The council also authorized a $100,751.00 agreement with the YMCA to manage Wilber Pool operations for the 2026 season. The contract includes an innovative $5,000.00 provision for lifeguard retention bonuses, funded by a NY SWIMS grant.

Addressing past concerns about pool closures, YMCA representatives assured the council that lifeguards are compensated during weather-related shutdowns in accordance with state labor law. They expressly stated that “we do pay the lifeguards, so it’s not like we pocket the money. We have to follow New York State law.”

“Most of the time we go to the pool, open the pool, we sit there for an hour or two to see if the weather’s going to clear. And we’re obligated to pay them at least four hours of pay anyway,” a YMCA spokesperson said. “We’re always going to show up and try to get the pool open.”

The council also signaled a renewed focus on downtown quality-of-life issues. Acting Mayor Harrington introduced a roundtable discussion on the “Good Cause Eviction Law,” referring the eviction protections matter to the Housing Committee for further study. The potential statute would require landlords to provide specific justifications—such as non-payment of rent or property damage—before declining to renew a tenant’s lease.

On the parking front, the council discussed reviving the city’s parking infrastructure task force to address the needs of downtown workers and residents. Councilmember Lipari Shue highlighted the plight of service workers who must currently move their vehicles every two hours to avoid tickets.

“If you have a table at a restaurant because you’re wait staff and you have to go move your car, the choice is deliver cold food [to customers] or move your car so you don’t get a ticket. That sucks. We would like to be accommodating of the service workers,” Lipari Shue said. “We’re trying to make it easier to live and work in downtown.”

Lipari Shue introduced the idea of a parking permit system that would exempt certain downtown business owners, employees and residents from downtown parking lot restrictions.

Councilmember Mathisen expressed concern that parking permits might actually create financial burdens for service workers and part-time employees.

The meeting concluded with the emergency authorization of up to $850,000.00 for the purchase of a used 2018 “rescue pumper” fire truck. Fire Chief Brian Knapp informed the council of a rare opportunity to purchase a never-in-service vehicle at a significant discount after two other fire districts merged and no longer needed the apparatus.

The truck, which combines the capabilities of an engine and a rescue vehicle, will replace a 25-year-old unit that has faced mounting mechanical issues. Chief Knapp noted that a similar truck ordered today would cost upwards of $1.3 million.

The Common Council is expected to revisit the AI moratorium and parking proposals at its next regular meeting on Tuesday, May 19.

This story was created by student reporters through the OnNY Community Media Lab, a program of SUNY Oneonta and the SUNY Institute for Local News.