Push for Data Center Expansion Continues

Enormous public pressure has been placed on the Orangetown Town Board and its Planning Board to deny Phase II of the Databank data center on the shore of Lake Tappan. The March 25, 2026, follow up meeting with Databank, owner of the colocation data center on Corporate Drive on the NY/NJ border, was another contentious meeting. Residents from New York and New Jersey filled every seat and spilled out into the lobby. 

Databank's attorneys, experts and consultants aggressively attempted to present a persuasive case for going forward. At its heart, their argument is that precedent was set with the previous approval of data centers under the Light Industrial Office zoning classification, or LIO. 

Responding to community and Board concerns, Databank detailed a new and improved plan for Phase II. It’s slimmed down!  No substation now needed!  They support the ball field! No water will be drawn from, or returned to, Lake Tappan as it is a closed loop and therefore, there's negligible water impact! The nearby wetland, called Wetland 2, is not really a wetland at all, to hear them explain it, it's just sort of a puddle with a few blades of grass sticking out. Lights? They will dim them. Noise? Databank says they have mitigated sound concerns related to Phase I and have gone above and beyond what is required for Phase II. Energy use? Databank was mum on rate increases for O & R consumers, but the proposed expansion will require upgrades to O & R’s existing grid. As of now, grid upgrade costs are passed on to ratepayers.

Board members present asked a few incisive questions after Databank’s lengthy presentation was completed. Concerns expressed by the Board include managing the impact from a spill or a fire at the site and any reduction in the required 100 foot buffer to provide parking. AKRF, consultants hired by the Board, also presented a long list of environmental issues that have yet to be addressed. 

When the public portion began, it started off with an attorney representing several families with homes on the New Jersey border adjacent to Databank and the Tappan Reservoir. The attorney stressed the obvious impact to homeowners on the property line. Among others voicing powerful opposition was a former member of the Rockland County Planning Board who had previously voted to deny Databank’s application. Numerous other individuals and organizations weighed in passionately to express opposition. Concerns ranged from decibel levels to air quality to the potential danger of eight diesel powered backup generators next to a reservoir. With one exception, all commenters were opposed to the approval of Phase II. 

Some say the fix is in. The Town Board has already given $58 million in tax incentives to Databank without apparent concern for the long-term impact on residents, the reservoir, increasing electricity costs and environmental concerns. 

We're all being told that high performance computing (HPC) is here to stay. It powers every aspect of our lives, but with six data centers already operating in and near Rockland County, the smallest county in the state of New York, public opinion is clearly saying that enough is enough.  

What, you may ask, was the outcome of this meeting? The Board failed to vote and ordered another continuation. The Board Chair ended the meeting by saying to Databank, “You have your work cut out for you.”