What's Happening?
The Batavia City Council has approved an amended agreement concerning utilities for a proposed data center project by Batavia DC Corp., a subsidiary of Hut 8. The project, valued at $500 million, is planned to be a 120,000-square-foot facility located at 1780 Hubbard Ave. The council had previously approved a master services agreement in July addressing the data center's electric utility needs. The amended agreement now includes terms for water and wastewater services, limiting water usage for cooling to 1,000 average daily gallons. The data center is also prohibited from engaging in activities like bitcoin operations. Despite some council members' concerns about sustainability and the agreement's language, the council passed the amended agreement.
Why It's Important?
The approval of this agreement is significant as it sets the stage for a major infrastructure project in Batavia, potentially generating substantial revenue for the city's electric utility. The data center's development could bring economic benefits, including job creation and increased local business activity. However, the project also raises environmental concerns, particularly regarding water usage and sustainability practices. The council's decision reflects a balance between economic development and environmental responsibility, with implications for how future data center projects might be managed in the region.
What's Next?
The data center project is expected to be operational by the end of 2026 or early 2027. The city will continue to monitor the project's compliance with the agreed terms, particularly regarding water usage. The council may also need to address any further concerns from residents or stakeholders as the project progresses. The project's success could influence future data center developments in Batavia and similar communities.
