Blab Crypto
North Tonawanda Extends Moratorium on Crypto Operations Amid Noise Concerns
The Niagara County Planning Board has approved a 12‑month extension of North Tonawanda’s moratorium on cryptocurrency operations and data centers. The moratorium, which has been in place for two years, was originally enacted to halt further expansion of the DigiPower X facility on Erie Avenue. It is set to expire on July 16, and the extension keeps it in effect until July 16 of the following year.
The extension includes a hardship clause that would give the city greater oversight over any potential changes to the DigiPower X site. City officials are also working on updates to the zoning code that would introduce specific regulations for data centers. According to the board’s statement, the additional year is intended to provide sufficient time to complete these zoning revisions.
The moratorium extension still requires final approval from the North Tonawanda Common Council. The council is scheduled to vote on the proposal at its meeting on Tuesday, and a public hearing will be held concurrently. The council’s decision will determine whether the moratorium remains in force through the end of the extension period.
In addition to the moratorium, the city has taken other steps to address complaints about the DigiPower X facility. The council updated the city’s noise ordinance, lowering the acceptable noise levels for industrial operations and increasing fines for repeat offenders. Police Chief Keith Glass has been directed to issue additional citations under the new ordinance.
These local actions come as the New York State Legislature passed a one‑year moratorium on approving new data centers last week. The state measure is awaiting Governor Kathy Hochul’s signature. The state moratorium mirrors the city’s restrictions and reflects growing concerns about the environmental and community impacts of large data‑center projects.
The DigiPower X facility, located at 1070 Erie Avenue, is a high‑capacity data center that was acquired in 2021. The plant is co‑located with a natural‑gas power plant and has plans to add additional capacity. Residents have raised noise‑pollution concerns, and a class‑action lawsuit was filed against the company in 2025. The facility’s operations have drawn scrutiny from local regulators and community groups.
The city’s zoning updates are expected to include requirements for noise mitigation, energy use, and environmental impact assessments. Officials say the new regulations will provide clearer guidance for any future data‑center projects and will help protect residents from excessive noise and other disturbances.
The moratorium’s extension and the city’s noise‑ordinance changes are part of a broader effort to balance economic development with community welfare. While the DigiPower X plant provides jobs and contributes to the local economy, residents have expressed concerns about the environmental footprint and the impact on quality of life.
The outcome of the Common Council vote will set a precedent for how North Tonawanda manages large‑scale data‑center projects. If the moratorium is extended, the city will maintain its current stance against further expansion of the DigiPower X facility and will have a clearer regulatory framework for future proposals.
The state moratorium, once signed by Governor Hochul, will apply statewide and could influence other municipalities in New York that are considering data‑center developments. The combined effect of local and state restrictions may lead to a slowdown in new data‑center approvals across the state.
At present, the city’s zoning code revisions are still in progress, and the Common Council’s vote will determine whether the moratorium remains in effect through July 16 of the next year. Residents and industry stakeholders are awaiting the council’s decision and the governor’s signature on the state moratorium.
The situation remains fluid, with the city’s regulatory actions and the state’s legislative measures shaping the future of cryptocurrency operations and data‑center development in North Tonawanda and beyond.
The extension includes a hardship clause that would give the city greater oversight over any potential changes to the DigiPower X site. City officials are also working on updates to the zoning code that would introduce specific regulations for data centers. According to the board’s statement, the additional year is intended to provide sufficient time to complete these zoning revisions.
The moratorium extension still requires final approval from the North Tonawanda Common Council. The council is scheduled to vote on the proposal at its meeting on Tuesday, and a public hearing will be held concurrently. The council’s decision will determine whether the moratorium remains in force through the end of the extension period.
In addition to the moratorium, the city has taken other steps to address complaints about the DigiPower X facility. The council updated the city’s noise ordinance, lowering the acceptable noise levels for industrial operations and increasing fines for repeat offenders. Police Chief Keith Glass has been directed to issue additional citations under the new ordinance.
These local actions come as the New York State Legislature passed a one‑year moratorium on approving new data centers last week. The state measure is awaiting Governor Kathy Hochul’s signature. The state moratorium mirrors the city’s restrictions and reflects growing concerns about the environmental and community impacts of large data‑center projects.
The DigiPower X facility, located at 1070 Erie Avenue, is a high‑capacity data center that was acquired in 2021. The plant is co‑located with a natural‑gas power plant and has plans to add additional capacity. Residents have raised noise‑pollution concerns, and a class‑action lawsuit was filed against the company in 2025. The facility’s operations have drawn scrutiny from local regulators and community groups.
The city’s zoning updates are expected to include requirements for noise mitigation, energy use, and environmental impact assessments. Officials say the new regulations will provide clearer guidance for any future data‑center projects and will help protect residents from excessive noise and other disturbances.
The moratorium’s extension and the city’s noise‑ordinance changes are part of a broader effort to balance economic development with community welfare. While the DigiPower X plant provides jobs and contributes to the local economy, residents have expressed concerns about the environmental footprint and the impact on quality of life.
The outcome of the Common Council vote will set a precedent for how North Tonawanda manages large‑scale data‑center projects. If the moratorium is extended, the city will maintain its current stance against further expansion of the DigiPower X facility and will have a clearer regulatory framework for future proposals.
The state moratorium, once signed by Governor Hochul, will apply statewide and could influence other municipalities in New York that are considering data‑center developments. The combined effect of local and state restrictions may lead to a slowdown in new data‑center approvals across the state.
At present, the city’s zoning code revisions are still in progress, and the Common Council’s vote will determine whether the moratorium remains in effect through July 16 of the next year. Residents and industry stakeholders are awaiting the council’s decision and the governor’s signature on the state moratorium.
The situation remains fluid, with the city’s regulatory actions and the state’s legislative measures shaping the future of cryptocurrency operations and data‑center development in North Tonawanda and beyond.
