Proposed Holyoke Data Center causes heated debate

The City Council discusses a proposed zone change amendment that would ban data centers in the city.
Photo credit: Holyoke Media

HOLYOKE — A proposed data center at the former Hampden Paper Complex on Water Street has sparked debate in Holyoke after the City Council discussed a zoning amendment to ban the facilities during its June 2 meeting.

At the meeting, the council had the option to establish a ban and prohibit any data centers from operating within the city of Holyoke.

The original order was filed on January 20 and the first public hearing took place Feb. 4. The second and final public hearing took place and eventually closed on April 14. It was then voted out of committee and sent to the full council for a vote, which happened on June 2.

The Committee on Ordinance referred an order that the Holyoke zoning ordinance be amended to add a definition of “Data Center” as a use, and to clarify that this use is not allowable in any zoning district in the city. The recommendation was that the order be adopted.

After a lengthy debate, the zone change amendment was voted to be sent back to the City Council Ordinance Subcommittee. City Councilors voiced that they wanted to send it back to ordinance to further discuss the language and its potential impacts on data centers that are currently operating in the city and weigh in on other options such as a moratorium, which was discussed at a previous subcommittee meeting.

City Councilor Mimi Panitch also voiced that the item should be sent back to the subcommittee to allow more people to express their opinions in a future public hearing.

Other city councilors, including Anne Thalheimer and Richard Purcell, spoke out against the idea of a data center altogether.

“We became a green community in 2010. This will ruin our green community,” Purcell stated. “It sucks your energy, it sucks your water, it causes noise and as far as I’m concerned its destructive and it turns our city away from what it is.”

City Council President Tessa Murphy-Romboletti said that making a decision to ban something outright seems drastic and would like to see another solution if that is what the body wishes.

Mayor Joshua Garcia released a statement on his Facebook after seeing residents and the City Council engage in conversation and debate on the proposed data center.

He acknowledged the concerns people have expressed due to stories about massive hyperscale data centers that drive up electricity rates for families, consume vast amounts of water, create constant noise for nearby neighborhoods and deliver fewer local benefits than promised.

“Those concerns are valid, and I sympathize with residents who worry about similar impacts here in Holyoke,” Garcia stated. “This project, however, is fundamentally different. At just 21 [megawatts], this is a small, right-sized facility, comparable to the Massachusetts Green High Performance Computing Center that has operated responsibly in Holyoke since 2012 without negatively impacting our water or electric supply. It is nothing like the massive gigawatt-scale projects proposed by billionaire developers elsewhere.”

He added that the project will have no strain on residents’ electricity bills or supply as HG&E has confirmed Holyoke has the electric capacity needed. Garcia said the water impact is also minimal.

According to Garcia, unlike the Massachusetts Green High Performance Computing Center that is a non-profit facility and pays a PILOT of just $90,000 annually, it is believed that this proposed $200 million private investment will generate $2 million plus annually in real property taxes. It will also put a long-vacant property back on the tax rolls and help improve a section of Water Street that is blighted.

Garcia also talked about the assumption that the mayor has the power to choose what company comes into town and where they can set up shop. He explained, “I do not have the authority to hand-pick projects and do not control what investors want to do in town. What we do is enforce the ordinances, advise developers of potential opportunities, and disclose any limitations that may exist under the laws; zoning, permitting, etc.

Whether I like a particular project or not, my commitment to the residents of Holyoke is to the process and enforcement of the laws.”

Recently, state Sen. John Velis, who represents Holyoke, demanded that data centers, not residents, should pay for any energy and water strain.

“I firmly believe that Massachusetts needs to continue to be a leader of technological innovation and advancement; in fact I think it is vital for Massachusetts to remain a competitive with other states however, these advances cannot be born on the backs of residents,” Velis shared. “Today’s costs already put enough strain on residents’ wallets, and that is why I firmly believe that any costs associated with Data Centers should fall squarely on the facilities that are directly responsible for the increased usage.”