Digipower X, operator of a cryptomining facility in North Tonawanda, New York, has presented plans to transform its site into an artificial intelligence data center complex. The proposal aims to replace existing cryptomining equipment with AI infrastructure, addressing long-standing noise complaints from residents and reducing power consumption. This shift reflects a broader industry trend towards repurposing energy-intensive crypto operations for other data processing needs.
Dan Rotunno, plant manager for Digipower X subsidiary World Generation X, outlined the plans to the North Tonawanda planning board last week. The company intends to construct an 80,000 square foot enclosed building at its 1070 Erie Avenue location. This new facility would house computers specifically designed for artificial intelligence applications, marking a departure from its previous focus on Bitcoin mining.
The current operation at the former Fortistar gas-powered plant has drawn consistent criticism from local residents since its inception in 2022 due to continuous noise. Digipower X plans to remove 20,000 fans currently used for cooling cryptomining computers housed in shipping containers. Rotunno stated, “It’s not bitcoin anymore, we’re moving to an AI infrastructure,” confirming that several existing containers have already been removed.
The proposed AI data center would utilize 20 industrial-sized fans, which Rotunno said would produce minimal noise. A closed-loop cooling system, employing a water-glycol mixture and cooling towers, would replace the current fan-based system. Rotunno emphasized that this new cooling method would not require water from the city’s supply.
The new computers for artificial intelligence will be denser and more efficient than the cryptomining equipment. The facility’s power consumption is projected to decrease from 16 MW to 10 MW. Additionally, around 10 diesel generators, housed in insulated containers, would be on site for emergency power needs.
Implementation of the proposed changes is expected to take one year, according to a letter Rotunno sent to the city planning board last month. The project is also projected to create 50 to 70 new full-time positions in fields such as computers, electrical, mechanical, and security, adding to the 23 existing employees.
Despite the proposed changes, some residents remain concerned. Mark Polito, a resident, expressed skepticism at a Niagara County Planning Board meeting, stating, “We don’t believe that that’s what they’ll be used for.” He suggested residents believe the company intends to generate more power. These residents feel the conversion may violate the city’s current moratorium on new data centers or expansions of existing operations.
The North Tonawanda planning board has designated itself as the lead agency for the State Environmental Quality Review (SEQR) process. The proposal has been forwarded to the county planning board for its recommendation, with a final decision anticipated in at least a month. The county planners had recently issued a recommendation on a separate matter.