NFR makes a case for Urbacon

(Editor's note: Following is a press release from Niagara Falls Redevelopment in support of its Urbacon development. It is unedited)

Niagara Falls Redevelopment (NFR) announced today that it has filed a full application with the City of Niagara Falls for a Negotiated Planned Development District, more commonly referred to as a Planned Unit District (PUD). The new district would be known as “Data Center at Niagara Digital Campus PUD,” and would further NFR’s efforts to develop the $1.5 billion Niagara Digital Campus data center in downtown Niagara Falls.

The nearly 500-page PUD application was submitted to the City on Monday October 21, 2024. It is the next step in the development of the innovative, state-of-the-art data center, which is anticipated to bring 5,600 jobs to Niagara Falls during construction, as well as more than 550 permanent jobs when all phases of the data center are up and running.

The Niagara Digital Campus is being developed by NFR in conjunction with Urbacon Data Centre Solutions Inc., a preeminent developer, constructor, and operator of North American data centers.

“We have been working tirelessly on assembling all of the elements to submit this PUD application to the City of Niagara Falls, despite the considerable obstacles we’ve faced along the way,” said Roger Trevino, NFR’s Executive Vice President.

“It is important to remember that our application is for a negotiated PUD,” he added, “so we look forward to sitting down with city officials at the earliest opportunity to finalize the details of this exciting economic development project and move forward.”

Urbacon and NFR first approached the City of Niagara Falls in early 2021. So far, NFR has spent more than $ 4 million on the preliminary work required to advance The Data Center at Niagara Digital Campus project.

As set forth in detail in the PUD application, the Data Center at Niagara Digital Campus will be developed in five phases and will ultimately consist of eight two-story buildings and one one-story building, for a total of 1,232,715 square feet of new space. The full data center development is expected to cover approximately 53 acres of mostly vacant land, generally bounded by John B. Daly Boulevard, Falls St., 15th Street, and Buffalo Avenue in the City of Niagara Falls. The development encompasses more than 180 individual tax parcels, more than 95% percent of which are owned by NFR.

Niagara Falls is an Ideal Location for Data Center Development

With its cool climate and its proximity to cost-effective power, Niagara Falls is a prime location for data center development. As demonstrated in NFR’s application, when the project is fully built, The Data Center at Niagara Digital Campus will not overburden Western New York’s existing energy capacity. Given the proximity of key existing infrastructure, and the fact that NFR intends to construct a new substation for the project (at its own expense), National Grid has confirmed that there is sufficient existing capacity to support the Niagara Digital Campus, subject to a currently underway New York Independent System Operator study, which will specify any necessary system upgrades. Any such upgrades, like the rest of the project, will be paid, not by taxpayers in Niagara Falls, but by NFR.

Numerous national and international publications, including The New York Times, The Wall Street Journal, Bloomberg, and the Economist, have noted the unprecedented demand for data centers to support the growing Artificial Intelligence (AI) boom. Globally, there is a tremendous and growing market demand for data centers, and The Data Center at Niagara Digital Campus will position Niagara Falls to be a leader in this rapidly growing global field. The exponential growth of AI, video streaming, and cloud storage is causing extraordinary demand for state-of-the-art data centers such as the one NFR and Urbacon will bring to Niagara Falls. The United States data center market saw the largest pricing increase of all commercial real estate assets last year—further evidence of the growing importance of this field.

To learn more about the opportunities for Niagara Falls in the data center revolution, visit NiagaraFallsData.ai.

Among the Largest Private Developments in the City’s History

The 140-Megawatt (MW) Niagara Digital Campus will be among the largest private development projects in the City’s history. It is projected to create $250 million in wages, with economic spinoff benefits that are expected to be over $810 million. The annual wages of the anticipated 550 high-paying, career-building permanent jobs are projected to be nearly $29 million. The total economic benefit from the Data Center at Niagara Digital Campus is expected to exceed $250 million annually. The ancillary businesses that will arise from the Data Center at Niagara Digital Campus are forecasted to create more than 1,700 permanent jobs.

All job and economic development statistics are based on projections derived from data in several prominent studies—including by the U.S. Chamber of Commerce Technology Engagement Center and the Northern Virginia Technology Council.

The City of Niagara Falls will also realize significant tax revenue from The Data Center at Niagara Digital Campus. In New York, the supply and commodity components of electric bills are taxed at the State, County, and City levels. Given its 24/7 operation, the data center’s high-electrical demand will generate high electrical service revenues and thus high tax revenues.

As described in the PUD application, it is projected that the fully built out 140 MW data center will generate an estimated tax revenue of $564,588 per month and $6,773,061 annually in State, County, and City tax revenues. Isolating the impact on the City of Niagara Falls, tax revenue estimated at $313,660 per month or $3,763,973 per year is possible, assuming 4% pre-emptive plus 1% Gross Receipts Tax (“GRT”) based on applicable utility tariff and tax law as of 2024.

Further, as part of the development, NFR also remains committed to its offer of $3.5 million and 10.2 acres of NFR-owned property near the PUD to help drive economic development.

Planned Unit District (PUD) Description

The proposed Planned Unit District (PUD) is intended to allow flexibility in zoning regulations for projects found to be beneficial to the community, in furtherance of the goals of the City’s Comprehensive Plan. The purpose of the PUD is to encourage and allow more creative development of land than is possible under standard zoning district regulations, like the City’s zoning ordinance. A PUD allows flexibility in planning and design through a process of review and discussion, ensuring efficient investment in public improvements, a more suitable environment, and protection of community interest.

After consideration of the plan and discussion with NFR, the City of Niagara Falls will then submit the PUD application to the City Council, or directly to the Niagara Falls Planning Board for review and a public hearing on the plan. After approval from the planning board, the City Council has final approval over the creation of the PUD.

Included in the nearly 500-page PUD application submitted by NFR to the City of Niagara Falls are a rezoning application and requisite fee, traffic and noise studies, an environmental and energy impact plan, a full environment assessment form, verified ownership petition, a survey and legal description, a historical property assessment, and aerial maps showing the placement of the Data Center at Niagara Digital Campus and various other key elements of the plan.

Importantly, the traffic study prepared by C&S Engineers, Inc. showed that there would be no adverse impact on local traffic, while a Noise Feasibility Study prepared by Arcadis Canada Inc. of Ontario, determined that the project is feasible and, with modest mitigation measures, will not exceed local noise ordinances.

As a facility operating on a 24-hour, seven-day-a-week basis, 365 days a year, the estimated 550 employees will enter and exit on a staggered basis according to shifts – resulting in limited additional car traffic during peak periods. In addition, several public transportation options exist directly adjacent to the facility to provide additional commuting options.

A full copy of the Negotiated Planned Unit Development application can be found at the Niagara Digital Campus website, in two parts: Part I and Part II.

About Urbacon

Urbacon is a preeminent developer, constructor, and operator of hyperscale and build-to-suit data centers in North America. They provide leading edge facilities with high connectivity, high efficiency, and high security, in flexible geographies with expansion potential.

Founded in 1984, Urbacon brings the competitive advantage of in-house resources with a range of technical proficiencies at their disposal including planning, architecture, engineering, and project management.

Urbacon successfully operates facilities similar to the one NFR proposes to bring to Niagara Falls in Montreal, Toronto and Richmond Hill, Ontario. Each project brought tremendous economic benefit to its local community and has received the full support of all levels of government.

About Niagara Falls Redevelopment

Niagara Falls Redevelopment (NFR) is a private company dedicated to the redevelopment of Niagara Falls, New York. NFR owns more than 440 parcels of prime real estate in the heart of downtown Niagara Falls. With large, ready-to-build parcels just steps away from the falls, NFR has a rare opportunity to participate in the rebirth of one of America’s most beloved cities.

Over the years, NFR has spent more than $116 million in the Niagara Falls area as part of its continuing effort to develop key parcels. This represents one of the most significant private investments of capital in the history of the City of Niagara Falls. NFR’s contributions to the community include property and school taxes totaling nearly $13.2 million, making NFR and its subsidiaries among the largest taxpayers in Niagara Falls.

For more information about the Niagara Digital Campus, visit niagaradigitalcampus.com.