Plattsburgh weighs 12-month crypto mining ban

Plattsburgh officials are considering a 12-month moratorium on new and expanded cryptocurrency mining, artificial intelligence and other high-energy computing facilities while the New York city updates its zoning rules.

Mayor Wendell Hughes introduced Local Law P-2 on Aug. 20. The Common Council held a public hearing on Sept. 3 but has not adopted the proposed crypto mining and AI data center ban.

The measure would cover commercial facilities primarily devoted to cryptocurrency mining, blockchain validation, AI computing, machine learning, cloud computing, digital asset processing, server farms and colocation services.

A covered facility must require High Density Load Service under the city code or have a connected electrical demand of at least 300 kilowatts.

Plattsburgh targets facilities using at least 300 kilowatts

The proposed law would temporarily prevent city departments from issuing land-use approvals for covered high-energy facilities.

Restricted approvals would include building permits, zoning permits, special-use permits, site-plan approvals and certificates of occupancy. The restriction would apply to new facilities, expansions, building conversions and the reopening of facilities after operations ceased.

Electrical consumption alone would not bring an ordinary commercial or industrial business under the proposed law. Computing must represent the facility’s primary purpose or a substantially similar use.

Existing lawful facilities could continue operating during the moratorium. They could also perform routine maintenance, ordinary repairs and equipment replacements that do not materially increase electricity demand or computing capacity.

However, an existing operator could not expand, enlarge or materially intensify its facility when that change requires municipal approval.

Companies facing an “extraordinary hardship” could apply for relief. The Common Council would need to hold a public hearing and issue written findings explaining its decision.

The moratorium would pause approvals during zoning work

Plattsburgh is conducting a wider review of its zoning regulations. City officials said existing rules do not adequately address newer categories of high-energy computing.

The city’s review may examine appropriate zoning districts, electrical thresholds, utility infrastructure, noise, cooling systems, fire protection and emergency response. It may also consider battery storage, decommissioning and financial assurance requirements.

Local Law P-2 describes the measure as a temporary planning action. It says the moratorium is not intended to decide rights involved in existing litigation, contracts, permits or utility arrangements.

The city owns and operates the Plattsburgh Municipal Lighting Department. Officials said unusually large power users can affect utility planning, reserve capacity, capital spending, reliability and municipal finances.

Hughes told local media that some data center proposals can demand about 50 megawatts. Plattsburgh’s total power allocation is approximately 105 MW, meaning one project could potentially consume close to half that amount.

His statement describes a possible project size rather than the documented electricity use of an approved development. The mayor also said existing high-energy facilities were not raising residential electricity rates.

Plattsburgh previously halted Bitcoin mining in 2018

The proposal revives a land-use debate that made Plattsburgh one of the first U.S. cities to halt new commercial cryptocurrency mining.

The Common Council adopted an 18-month moratorium in March 2018 after mining facilities increased demand for the city’s allocation of low-cost hydroelectric power.

When demand exceeded that allocation, Plattsburgh needed to purchase more expensive electricity on the open market. Those costs affected residents’ bills.

Officials later adopted rules requiring special-use permits for new commercial mining operations and expansions. Those regulations also addressed noise, fire safety and heat generated by mining equipment.

The 2026 proposal is broader. It covers AI, cloud computing and large data centers alongside cryptocurrency mining and blockchain validation.

That expansion reflects the growing overlap between mining and AI infrastructure. Both industries seek sites with available grid connections, cooling systems and large amounts of power.

As crypto.news reported, Bitcoin mining companies are converting existing facilities into AI data centers as mining economics weaken and demand for computing capacity rises.

One recent example involved Hyperscale Data, which stopped Bitcoin mining at its Michigan facility while preparing the property for an AI computing customer.

The proposal still requires further review and a vote

Local reporting said the proposed measure must undergo county review before returning to the Common Council. Plattsburgh has not published a final adoption date.

The council’s next regular meeting is scheduled for Sept. 17 at 4:30 p.m., according to the city’s public calendar. However, the currently available information does not confirm that Local Law P-2 will receive a final vote during that meeting.

The council must also comply with New York’s State Environmental Quality Review Act before adopting the law.

If approved, the moratorium would begin when the city files it with the New York secretary of state. It would expire 12 months later unless the council repeals it early or extends it through another local law.

During that period, officials would attempt to develop permanent rules for high-energy computing facilities. The proposal does not require the city to complete every listed study before the moratorium ends.

No publicly traded miner or data center operator has disclosed a material project affected by the proposal. There is therefore no verified market reaction directly connected to the hearing.

The measure’s next confirmed milestone is the council’s Sept. 17 meeting. County review, environmental compliance and a council vote remain necessary before the moratorium can take effect.