East Fishkill, a Hudson Valley community once defined by its role as a cornerstone of New York’s semiconductor industry, has enacted a strict three-year moratorium on large-scale datacenters. The ban represents a significant rejection of a proposed 1-gigawatt artificial intelligence campus by Treetop Companies, highlighting a growing national tension between rural communities and the rapid expansion of AI infrastructure.
The hamlet, located approximately 70 miles north of New York City, served as the site of IBM’s sprawling 460-acre research and manufacturing campus for nearly five decades. When news emerged in early 2026 that Treetop Companies was pursuing plans for a facility spanning 143 acres and more than one million square feet, locals anticipated a continuation of their area’s technological legacy. Instead, the proposal triggered immediate and fierce opposition.
Before any formal permit applications were submitted to municipal authorities, residents began mobilizing. They attended town board meetings, organized rallies, and demanded a halt to the project. In response to the intensity of public concern, the town issued a temporary ban in late June, prohibiting the consideration of any datacenter larger than 20 megawatts until July 2029. This measure allows officials time to study the potential impacts on local water resources and ecosystems.
“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 Tanya Radford, a resident and professor who has been active in the opposition. “This is not an anti-tech town. I’m an educator. I use technology.”
The controversy gained traction after it was revealed that Treetop Development, through a local entity called Donovan Drive Holdings, had entered the queue with the New York Independent System Operator (NYISO) for approximately 1,000 megawatts of electrical service. While the company initially sought approval for a warehouse, the energy requirement signaled a much larger industrial project. The proposed facility would consume more electricity than the entire city of Buffalo, which has a population of 275,000, compared to East Fishkill’s 30,000 residents.
Town Supervisor Nick D’Alessandro emphasized that standalone datacenters are not listed as a permissible use under current zoning laws and that no application had ever been formally filed with the town. Despite this, the board voted unanimously to extend an initial seven-month pause into a three-year moratorium. Melissa Hoffmann, a resident and organizer with Food & Water Watch, credited months of sustained public pressure for the extended ban.
Residents argue that their opposition is rooted in the unprecedented scale of the proposed development rather than a fear of technology itself. East Fishkill has long been described as an innovation hub, home to iPark 84, which continues to host technology companies. One existing tenant at the park is currently seeking to expand its datacenter by only 150 megawatts, a fraction of the size proposed by Treetop.
Fran Caracappa, a candidate for county legislature, noted that the pushback focuses on the economic burden placed on the grid and the lack of lasting employment benefits. “The Treetop center would be 1,000 megawatts. People do not want to pay higher electricity rates… It’s not going to provide work to keep people here like the previous tech businesses did,” Caracappa said.
Historical memories of environmental degradation also weigh heavily on the community. IBM’s former manufacturing operations left behind groundwater contamination and several Superfund sites, serving as a cautionary tale for current residents. Concerns have also been raised regarding noise pollution from diesel generators, impacts on property values, wetland preservation, and the protection of the area’s rural character.
The local battle has drawn state-level attention. New York Governor Kathy Hochul recently signed an executive order imposing a one-year statewide moratorium on hyperscale datacenters, making New York the first state to take such action. President Donald Trump criticized the move, calling it a “terrible decision” and accusing Hochul of political maneuvering, while also disparaging towns that resist datacenter development.
Treetop Companies has formally appealed East Fishkill’s moratorium. In a 17-page objection letter, the developer’s attorneys argued that the ban unlawfully targets their property and functions as a permanent prohibition rather than a temporary planning measure. They cited years of investment in environmental reviews and utility coordination.
For residents like Hoffmann, the three-year ban marks a significant victory in the face of powerful developers. “People are winning,” she said. “Communities that fight these datacenters are winning.”
Irony overload. IBM left Superfund sites and now residents are banning the very thing they once exported. History really does repeat.
The scale is terrifying. 1,000 megawatts for a town of 30,000? That’s insane. Glad they stood their ground.