Data Center Moratorium Public Hearing Set in Oneonta Town
Eco-Yotta Project in Limbo
By ERIC SANTOMAURO-STENZEL
ONEONTA
The Town of Oneonta board unanimously voted on March 11 to set a public hearing for a one year data center and commercial cryptomining moratorium at its regular meeting on April 8. The board is likely to pass the moratorium shortly thereafter.
“I just want to say thank you to the 700 community members who have shared and advocated for the community on this issue,” Town Supervisor Will Rivera (D) said just before the vote. “This is your government. We are here for you.”
If passed, the five-page moratorium would offer one year for town officials to develop a more permanent law regarding data centers and cryptomining. During that period, no proposal would be “accepted, processed, approved, approved conditionally, or issued” for a data center or commercial cryptocurrency operation in the town.
The moratorium as provided for the meeting agenda offers exemptions for certain medical uses, municipal education services and functions of government. There is also an exemption for facilities utilizing less than a certain threshold of power, though there is a blank space where the amount should be. Violating the moratorium could lead to a fine of up to $250.00 or up to 15 days imprisonment.
Board member and former interim town supervisor Brett Holleran (R) argued for moving straight to a law.
“I don’t think there’s a person on this board, and I could speak for everyone without actually even asking based on the conversations we had, that are not for it,” Holleran said, referring to the potential law. “So what are we investigating in a moratorium?”
Rivera replied that the choice for a moratorium over an immediate law was on advice of the town attorney, which he confirmed. Chris McIlveen of Coughlin & Gerhart LLP said the moratorium would allow for the town to do a “thorough review” of potential impacts of data centers and commercial cryptomining.
“I’m going to follow the legal advice of the attorney on the proper steps to best protect the town,” said Deputy Supervisor Trish Riddell Kent (R), who has long advocated for a moratorium.
The proposed moratorium comes after nearly a year of public pressure in response to a proposal from Eco-Yotta Inc. at 357 County Highway 9, as well as opposition to inquiries about potential data center development at the Oneonta railyards.
In a barn already on the Eco-Yotta property zoned for residential agriculture, AI computers would manage and heat hydroponic crops, developers say. Computing power would be used to assist startups in collaboration with SUNY Oneonta. Their zoning application said the project could use up to three million kWh of electricity per year, the equivalent of nearly 300 homes, though Eco-Yotta has said that number is a maximum.
In a business plan the company presented to the board in December, Eco-Yotta officials described the project as a “hydroponic agriculture, applied research, and workforce development campus” that includes an “accessory AI/IT research hub.”
It is unclear how that description would fit with the proposed moratorium, which defines “data centers” as a facility which is “primarily used” for digital data “storage, management, processing, and transmission,” including but not limited to “non-artificial intelligence workloads and artificial intelligence workload.”
When Eco-Yotta originally filed documents with the town and reached a Memorandum of Understanding for collaboration with SUNY Oneonta, the company frequently described its project as a “data center” and sought an industrial rezoning. After facing opposition, the company reapplied and strenuously argued its project is distinct from a data center, seeking a Planned Development District rezone. The most recent application describes the project purpose as “agricultural hydroponics research & development hub (agri-business).”
At the start of the meeting, Rivera said the moratorium would apply to any “pending applications” or “new applications,” though did not specify any projects. He has previously been critical of the Eco-Yotta proposal.
Opponents of the project have called into question Eco-Yotta’s repeatedly shifting descriptions of what it hopes to do.
“They’re using other terms to hide it, that it’s not going to be a data center,” Jessie Simpauco said of Eco-Yotta during public comment, expressing support for the moratorium. “I think we need to slow down on considering AI in the town, especially [because] we don’t have any regulation, statewide, federal, and most of the AI companies that are trying to push it are lobbying for deregulation.”
Alongside its rezoning application, through its attorney Eco-Yotta has argued that much of their proposal qualifies as a “home occupation,” a designation in town code for uses that are “clearly incidental and secondary to the use of the dwelling for dwelling purposes and does not change the character thereof.” If that were the case, Eco-Yotta would not need the rezoning approval to pursue significant portions of its project.
Neither town officials nor Eco-Yotta answered by press time whether the town has provided a determination to the “home occupation” question.
The Eco-Yotta property was listed for sale in February. Rivera told AllOtsego that Eco-Yotta has not notified the town of any requested changes to their application.
