East Fishkill, New York, a hamlet once defined by IBM's semiconductor manufacturing, has enacted a three-year moratorium on large datacenters after residents fiercely opposed a proposed 1,000-megawatt AI campus. The unanimous decision, adopted in late June, reflects a growing national divide over whether the benefits of artificial intelligence infrastructure outweigh its enormous demands for electricity, water, and land.
Proposed Datacenter Sparks Immediate Opposition
The controversy began in early 2026 when Treetop Companies, a real estate developer, explored plans for what could become one of the largest AI datacenters in the country—a roughly 1-gigawatt campus spanning more than 1 million square feet across about 143 acres. The project would consume more electricity than the entire city of Buffalo, which has about 275,000 people, while East Fishkill is home to just 30,000.
Residents attended town board meetings, organized rallies, and advocated for a temporary ban even before any permit application was filed. The town issued a three-year moratorium on datacenters larger than 20 megawatts, effective until July 2029, while officials study potential impacts on water resources and local ecosystems. The development company has appealed the measure.
“I just think that we’re at this moment where things are happening very quickly, we need to get our ducks in a row and think about the various ways in which datacenters and new energy usage will affect our long-term community cohesiveness, environmental quality, and character,” said East Fishkill resident and professor Tanya Radford.
A Tech Town's Pushback
East Fishkill has long been described as an “innovation hub.” IBM transformed the town during the latter half of the 20th century into one of the nation's leading semiconductor manufacturing centers, employing thousands and laying the foundation for what is now iPark 84, a mixed-use commercial and residential facility. Former IBM facilities remain a defining part of the local economy, and iPark continues to house technology companies.
Residents insist their opposition is not anti-tech but directed at the unprecedented scale of AI infrastructure. “The pushback is really to the size,” said resident Fran Caracappa, a candidate for county legislature. “The Treetop center would be 1,000 megawatts. People do not want to pay higher electricity rates because of a larger datacenter coming in and putting pressure on the grid.”
Concerns also include groundwater protection, noise, diesel backup generators, property values, wetlands, and the area's rural character. IBM's past manufacturing operations left lasting scars, including several polluted Superfund sites from groundwater contamination associated with semiconductor production.
Statewide and Developer Reactions
Barely two weeks after East Fishkill's moratorium passed, New York became the first US state to enact a pause on new datacenters when Governor Kathy Hochul signed an executive order mandating a one-year statewide pause on hyperscale datacenters. Donald Trump criticized the move on his Truth Social platform, calling it “a terrible decision” and accusing Hochul of implementing the ban for political reasons.
Treetop has appealed East Fishkill's ban. In a 17-page objection letter reviewed by the Guardian, attorneys argued the moratorium unlawfully targets the company's property and amounts to a permanent prohibition. The company said it spent years and significant resources advancing development plans, including environmental reviews, wetlands investigations, traffic studies, and utility coordination.
East Fishkill residents are claiming victory. “People are winning,” said Melissa Hoffmann, a resident and organizer with Food & Water Watch. “Communities that fight these datacenters are winning.”
