BY ADAM ATKINSONNorth Country This Week

POTSDAM – Town residents concerned about the impacts of large scale data centers on local resources have a little breathing room in Potsdam while local leaders build a code to deal with this type of development.

The Potsdam Town Board has approved a 12-month moratorium on large-scale data centers and cryptocurrency mining operations. Local officials now have a year to develop zoning regulations to address potential impacts these types of facilities will have on electricity demand, water resources, noise and the town's rural character.

Approved at the board’s Nov. 5 meeting as Local Law 2026-6, the moratorium temporarily suspends applications, permitting and construction of qualifying computing facilities in the unincorporated portions of the town. Meanwhile officials intend to study how the increasingly common energy-intensive operations should be regulated.

Existing town zoning regulations do not specifically address the location, size, design or operation of large-scale computing facilities, including data centers supporting artificial intelligence, cloud computing and digital storage.

“The purpose of this local law is pretty straightforward, to give the town board a reasonable amount of time to study the potential impacts of large-scale computing facilities before projects of that size are considered for development in the community,” said Town Councilmember Pat Brady who initially brought the issue to the board earlier this summer.

Brady said while the town recognized the possibility of economic development from such facilities being constructed in Potsdam, the current law was not adequate to handle this kind of project.

Brady cited potential effects on electrical infrastructure, utility costs, water resources, emergency services and neighboring land uses as reasons for establishing the temporary restrictions.

According to numerous news stories in multiple markets nationwide over the last year, such facilities can require substantial electrical capacity, continuous equipment operation, extensive cooling systems and backup generation. Cryptocurrency mining operations notably can potentially create noise, heat and additional infrastructure demands.

The town’s new law decrees that data centers qualify as large-scale computing facilities if they have an actual or anticipated electrical demand of at least 20 megawatts or occupy at least 50,000 square feet. Cryptocurrency mining operations qualify at an electrical demand of 5 megawatts or more.

The moratorium does not apply to ordinary computer systems or server rooms serving schools, hospitals, banks, colleges, municipal facilities or commercial businesses whose primary purpose is not operating a large computing facility.

Town officials are expected to spend the next year eyeing its zoning regulations, and consulting with planning, engineering, utility, environmental and emergency services professionals, along with soliciting public input.

For town residents, the moratorium provides a temporary safeguard against large computing developments proceeding before officials evaluate their potential effects on local infrastructure, utility costs, water supplies, noise levels and surrounding neighborhoods. It also creates an opportunity for residents to participate in shaping permanent rules governing where and how such facilities could operate.