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AI Data Center Project in Rural NY Faces Opposition Over Subsidies and Environmental Concerns

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A proposed $19.4 billion artificial intelligence data center near Buffalo and Rochester, New York, is encountering fierce opposition from local residents and indigenous groups. Critics, including residents and members of the Tonawanda Seneca Nation, argue the project threatens their environment and way of life. The developer, Dallas-based Stream Data Centers, would receive $1.4 billion in state tax subsidies, sparking debates about the financial burden on taxpayers versus the promised economic benefits.

The center's massive 500 MW electricity demand, equivalent to 20% of Niagara Falls' output, raises concerns about straining the power grid and increasing utility rates across New York State. Mayor Sean Ryan warned of potential rate hikes similar to those seen in states with high data center concentrations. Opponents also cite a conflict of interest, as the county economic development agency overseeing the environmental review stands to gain millions in fees and sales tax revenue from the project.