A former industrial wasteland along the Niagara River is poised to become something entirely different: a hub for the infrastructure powering artificial intelligence.
Developers have proposed a nearly 500,000-square-foot data center as the first phase of a broader redevelopment of the former Tonawanda Coke site, a property long associated with heavy pollution and one of the region’s most high-profile environmental cleanups. After more than a century of industrial use and years of remediation, the site is now being repositioned for the digital economy.
The project reflects a growing national trend. As demand for AI and cloud computing accelerates, data center developers are increasingly targeting brownfield sites, properties once considered too contaminated or costly to redevelop. These locations often come with a critical advantage: existing access to power infrastructure. In Tonawanda, that access is central to the proposal, with the planned facility expected to consume roughly 300 megawatts of electricity, comparable to the usage of hundreds of thousands of homes.
Supporters argue the redevelopment offers a practical path forward for land that might otherwise remain idle. Local officials have pointed to the potential for new tax revenue, replacement jobs following the site’s 2018 closure, and the broader economic benefits of reinvestment in long-neglected industrial corridors.
But the proposal also underscores unresolved tensions around environmental justice and infrastructure siting. Community advocates warn that data centers bring their own impacts, including significant energy demand, noise, and continued industrial activity in areas already burdened by pollution. Critics argue that placing new infrastructure on historically contaminated land risks perpetuating patterns in which vulnerable communities shoulder disproportionate environmental costs.
The Tonawanda project also highlights a broader sequencing strategy emerging nationwide: using data centers as an initial, lower-sensitivity use that can unlock future phases of redevelopment, including commercial and even residential construction.
As municipalities across the tri-state region confront rising demand for power-intensive digital infrastructure, the question is no longer whether these projects will be built—but where, and under what conditions. In places like Tonawanda, the answer may increasingly lie in the legacy landscapes of America’s industrial past.
The Buffalo News. (2026, March). Data center proposed for former Tonawanda Coke site along Niagara River.
U.S. Environmental Protection Agency. (n.d.). Brownfields program overview. https://www.epa.gov/brownfields
International Energy Agency. (2024). Electricity 2024: Analysis and forecast to 2026. https://www.iea.org/reports/electricity-2024
U.S. Department of Energy. (2023). United States data center energy usage report. https://www.energy.gov
Politico. (2026, March 30). No one wanted to build on this polluted site. Then came AI.
PJM Interconnection. (2024). Load growth and data center demand in PJM region. https://www.pjm.comNew York Independent System Operator. (n.d.). Large load interconnection process and requirements. https://www.nyiso.com
