Economic Impact of Proposed Niagara Falls Data Center Released Amid Legal Battle with City

A newly released study by MRB Group projects that the proposed Data Center at Niagara Digital Campus in Niagara Falls will generate over $414 million in additional tax revenue over 20 years, potentially saving local homeowners an average of $730 annually. The study also estimates job earnings exceeding $1.66 billion, supporting nearly 1,000 jobs per year on average. However, the ambitious $1.5 billion project by Niagara Falls Redevelopment (NFR) is facing significant opposition from Mayor Robert M. Restaino who has instead pushed for the site’s use as a stadium, leading to an ongoing eminent domain lawsuit.

The MRB Group, a leading engineering, architecture, and municipal planning company, has released a comprehensive 24-page report detailing the fiscal benefits of the proposed data center (you can read it HERE). The study highlights the substantial tax revenue, job creation, and economic spin-off benefits anticipated from the state-of-the-art, 1.2-million-square-foot data center project. Partnering with Urbacon Data Centre Solutions Inc., NFR aims to develop a high-capacity facility consisting of nine buildings equipped with advanced server halls, network infrastructure, office space, and mechanical and electrical support areas.

Key projected tax revenue benefits include:

- $298 million in new property, sales, and gross tax receipts for the City of Niagara Falls and its School District over 20 years.

- $54 million in additional property and sales tax revenue for Niagara County.

- $63 million in sales tax revenues for New York State, primarily from energy usage at the data center.

“These numbers reinforce what we have said from the start—the Data Center at Niagara Digital Campus represents the best investment for Niagara Falls, creating well-paying technology jobs, substantial tax revenue, and long-term prosperity,” said Roger Trevino, Executive Vice President of NFR. “We are ready to begin this project immediately and look forward to working with the city.”

Mayor Robert M. Restaino has fiercely opposed the project, advocating instead for the construction of a multi-use stadium on the same land. Restaino has initiated an eminent domain lawsuit against NFR in an attempt to seize the property, arguing that a stadium would provide a greater community benefit.

Restaino has maintained that a a stadium can serve as a regional attraction, boosting local businesses and improving the quality of life for our residents.

NFR has countered that the data center will provide more sustainable economic growth, pointing to the consistent revenue stream from property and sales taxes. The company has also raised concerns about the feasibility of the stadium project, questioning the city’s ability to secure sufficient funding and long-term operational viability.

According to Dennis Elsenbeck, a consultant on the Niagara Digital Campus project, the data center would also stabilize electrical rates by expanding the city’s ratepayer base. Additionally, the development would bring significant infrastructure improvements, including a new substation and upgraded transmission lines.

Meanwhile, the legal battle over eminent domain remains unresolved, adding uncertainty to the future of the site. If the court rules in favor of the city, the land could be taken from NFR for the stadium project. If NFR prevails, the data center project will proceed, bringing what its proponents argue is a more substantial economic boost to Niagara Falls.

Economic Impact of Proposed Niagara Falls Data Center Released Amid Legal Battle with City