Plattsburgh, New York, is considering a 12-month temporary ban to suspend the addition and expansion of new crypto mining, AI computing, and other high-energy-consuming computing facilities. The local government says this move is to address issues such as electricity, noise, cooling, and firefighting while updating zoning regulations.
The applicable range is set for power capacities above 300 kilowatts.
The proposed local legislation P-2 applies to new construction or expansion of high-energy-consuming computing facilities within the urban area. As long as a project is primarily used for cryptocurrency mining, blockchain verification, AI computing, machine learning, cloud computing, digital asset processing, server farms, or cabinet hosting, and if it meets certain electricity consumption thresholds, it will be subject to these restrictions.
- The main use is for high-energy-consuming computing tasks.
- Must comply with local 'High-Density Load Service' standards
- The power demand required to be connected must reach at least 300 kilowatts.
Once the ban takes effect, various departments of the municipal government will temporarily not be permitted to issue land use approvals for related projects. The types of approvals affected include construction permits, zoning permits, special use permits, site planning approvals, and use permits. New construction projects, expansion projects, building renovation projects, as well as facilities that are reactivated after being shut down, are all within the scope of these restrictions.
Existing projects can continue to operate.
According to the draft, facilities that are already operating legally can continue to operate, as well as carry out routine maintenance, regular repairs, and equipment replacements, provided that this does not significantly increase electricity demand or computing power.
However, if the existing operators wish to expand or increase their scale, or to substantially enhance the capacity of their facilities, and such changes require municipal approval, then these efforts will not be able to proceed during the temporary ban period. For companies that claim to be facing "special difficulties," the city council may hold public hearings and provide written explanations as to whether exemptions will be granted.
The municipal government stated that the current zoning regulations are not sufficient to cover this type of high-energy-consuming facility. Therefore, it is necessary to set aside time to re-evaluate issues such as applicable areas, power thresholds, public utility infrastructure, noise control, cooling systems, fire protection, and emergency response. The review may also include battery energy storage, decommissioning arrangements, and financial assurance requirements.
A single project consumes nearly half of the electricity quota.
The city of Plattsburg owns and operates its own municipal lighting department. Officials stated that large-scale electricity consumption projects can affect power planning, reserve capacity, capital expenditures, power supply reliability, and municipal finances.
Mayor Wendell Hughes told local media that the power demand for some data center projects could reach about 50 megawatts, while Plattsburgh's total power quota is approximately 105 megawatts. This means that a single project could theoretically consume nearly half of that quota.
However, he also stated that the existing high-energy-consuming facilities have not currently raised electricity prices for residents. The report also pointed out that the mentioned 50 megawatts refer to the potential scale of projects, and not the actual electricity consumption data of projects that have already been approved.
In 2018, Bitcoin mining was temporarily suspended.
This proposal has also drawn renewed attention to Plattsburgh's previous restrictions on Bitcoin mining. In March 2018, the local authorities enacted a temporary ban lasting 18 months to suspend new commercial cryptocurrency mining projects.
At that time, mining facilities increased the consumption of low-cost water and electricity quotas in the area. Once the quotas were exceeded, the municipal government had to purchase more expensive electricity from the open market, and these additional costs were subsequently passed on to residents' bills. Subsequently, local regulations were introduced requiring new commercial mining projects and expansion projects to apply for special use permits, as well as setting requirements for noise control, fire safety, and equipment cooling.
Compared to 2018, the proposal for 2026 covers a wider range. In addition to crypto-mining and blockchain verification, it also includes AI, cloud computing, and large data centers. The report indicates that this reflects an increasing overlap between mining and AI infrastructure, with both types of projects competing for sites that have access to power grids, cooling conditions, and the capacity for large-scale power supply.
Still requires county-level review and voting
At present, this measure has not been officially approved. The mayor proposed the local bill P-2 on August 20th, and the city council held a public hearing on September 3rd, but the adoption process has not yet been completed.
According to the local public schedule, the next regular meeting of the city council is scheduled for September 17th. However, the current information does not confirm whether the bill will proceed to final voting on that day. Before taking effect, the bill still needs to undergo county-level review and meet the requirements of New York State's Environmental Quality Review Law.
If ultimately approved, the temporary ban will take effect after the documents are submitted to the New York State Secretary of State and will expire after 12 months, unless it is revoked earlier by the city council or extended through new local legislation.
Additional information:As of now, no listed mining companies or data center operators have disclosed that any major projects have been explicitly affected by this proposal, and there has been no verifiable direct reaction in the market.
