A controversial bitcoin mining operation in the Finger Lakes is seeking to transform into a data center despite Gov. Kathy Hochul’s moratorium on new facilities powering the AI boom.
Neighbors of the Greenidge Generation plant have long complained that the facility with more than 20,000 continuously operating computers is a threat to the picturesque region. Now, Greenidge has rebranded as Vulcan Infrastructure and Power, and is asking for 200 megawatts of more power from the grid — enough to power roughly 150,000 homes, according to records from the state grid operator.
“The rapid expansion of AI infrastructure is increasingly constrained by one critical resource: reliable, available power,” Vulcan wrote in a statement published on its website. “The Company believes it is well-positioned to address this opportunity.”
The company says it has raised nearly $40 million in connection with the effort.
Earlier this month, Hochul signed the country’s first data center moratorium, pausing permits for facilities that use 50 megawatts or more of power. But the Department of Environmental Conservation would not say whether Vulcan’s application fell under the moratorium.
“The New York State Department of Environmental Conservation has not received any new applications relating to the reported change of use of the facility from crypto mining to data center operations,” spokesperson Jeff Wernick said.
Hochul’s executive order states all applications for the “construction or expansion” of data centers be “held in abeyance” until the state completes a study of the impact of data centers.
Vulcan began trading stock under its new moniker last Friday. According to the company’s announcement, it is unclear if crypto-mining operations will cease completely, but its investors plan to develop the site immediately as a data center. The company did not return multiple requests for comment and clarity.
Lisa Perfetto, an attorney at the advocacy group Earth Justice, said there isn’t much difference between running a data center and mining for digital currency.
“ It's the same old company with a new name,” Perfetto said. “They're now just attempting to rebrand as an AI data center, but that just has the same potential to cause harm, to further increase harmful emissions.”
She said the state needs to quickly clarify whether the fossil fuel-powered plant can become a data center.
“That's a question for the governor, the full scope of what the executive order covers,” Perfetto said. “It's more of the same with a company trying to escape a bad track record and ramping up load and the need for additional electric generation without value to New Yorkers and in further harm of climate and the environment.”
Hochul’s office referred questions to the DEC.
Local residents and environmental groups have campaigned to close the facility for roughly six years. Local advocates said Greenidge's operations cause pollution that mars the local tourism industry, which thrives on natural beauty and agriculture.
“Greenidge can change its name, but it can't change its track record,” said Yvonne Taylor, co-founder of Seneca Lake Guardian. “A new name doesn't mean a clean slate. Rebranding doesn't erase the years of pollution, disruption to our environment and quality of life, broken promises, and major threats to New York's climate goals."
Vulcan’s rebrand reflects the AI boom that has become a major national political issue. Communities around the country have expressed alarm about the mammoth data centers needed to power artificial intelligence. Residents have expressed concern that the data centers will cause spikes in their energy bills and produce more pollution.
The current bitcoin-mining facility has a capacity of 107 megawatts, enough energy for 75,000 homes. But the bitcoin business isn’t what it used to be. Last year, the company reported $15.2 million in revenue, a 25% drop compared to the previous year.