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A proposed hyperscale data center project at the Western New York Science and Technology Advanced Manufacturing Park (STAMP) is drawing renewed scrutiny after a third-party analysis questioned the economic benefits touted by developer STREAM US Data Centers and its financial backer, Apollo Global Management.
The report, prepared by the Applied Economics Clinic on behalf of opponents including the Tonawanda Seneca Nation and the Sierra Club, raises concerns about the scale of public incentives and the reliability of the project’s projected benefits.
At issue is STREAM’s request for approximately $1.46 billion in sales tax and mortgage recording tax abatements tied to its proposed data center complex at STAMP, a site being developed by the Genesee County Economic Development Center in the Town of Alabama.
According to the Applied Economics Clinic, STREAM’s cost-benefit analysis lacks sufficient documentation and fails to meet standards typically expected for public-sector decision-making.
The report also argues that key potential costs were not adequately addressed, including impacts on property values, tourism, public health, infrastructure demands and utility rates.
In addition, the analysis challenges STREAM’s job creation estimates, suggesting they exceed industry benchmarks. The report estimates the project could produce roughly 4,100 fewer direct temporary jobs and 1,300 fewer indirect temporary jobs than claimed.
One of the most significant findings centers on the scale of tax incentives. The report concludes that requested abatements could be worth up to 25 times more than the financial benefits promised through payments in lieu of taxes (PILOT) and host community agreements.
The report also highlights inconsistencies across three CBAs submitted by STREAM, with total projected costs ranging from $472 million to $1.4 billion and benefits ranging from $1.2 billion to $2.6 billion, without clear explanation for the variation.
Another major concern is the project’s energy footprint. The proposed data center campus would require roughly 500 megawatts of electricity, about four times the current generating capacity operating in Genesee County.
Critics argue that such demand could strain infrastructure and impact regional energy markets.
The proposal has already faced significant local opposition. More than 300 residents attended a March public hearing, with the majority voicing concerns.
A follow-up public hearing has been scheduled after technical issues invalidated the initial session under state requirements. Additional hearings are planned as part of the review process, including one tied to the site plan application later this month.
In response, the Genesee County Economic Development Center strongly disputed the report’s conclusions, calling it “significantly flawed” and suggesting it was designed to misrepresent publicly available data.
GCEDC officials defended the project’s economic impact, stating that STREAM would be required to meet job creation targets or risk losing incentives.
According to GCEDC, the project would create approximately 125 permanent jobs with starting salaries above $80,000, along with an average of 1,200 construction jobs annually over a five-year buildout, generating an estimated $500 million in wages.
The agency also rejected claims of negative impacts on property values and tourism, citing internal data showing rising property values in areas surrounding STAMP and pointing to extensive environmental studies conducted over nearly two decades.
GCEDC officials further argued that the project would generate more than $500 million in revenue for local governments and support major infrastructure upgrades, including improvements to the county’s water system.
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