ELDRED — Following public hearings focused on water protection, rural character and emerging technology development, the Highland Town Board unanimously approved temporary moratoriums on both package plant and data center projects on Tuesday.

The board adopted a 16-month moratorium on local land-use approvals involving package plants and decentralized water and wastewater infrastructure facilities, as well as a separate 12-month moratorium on data center development.

Town officials said the package plant moratorium is intended to remain in place while Sullivan County completes an aquifer study and while Highland continues work on its comprehensive plan.

Supervisor John Pizzolato said the package plant moratorium was developed through the town’s comprehensive plan committee and is intended to give Highland time to adopt longer-term land use regulations.

“This is a local law imposing a temporary moratorium on local land use approvals for so-called package plants and decentralized water and wastewater infrastructure facilities within the Town of Highland, pending development of comprehensive land use regulations,” Pizzolato said during the hearing.

Pizzolato said water protection has become one of the central themes of the town’s planning efforts.

“I would say 60 percent of the plan addresses water and water usage and keeping water safe,” Pizzolato said.

Residents and board members discussed concerns about groundwater resources, wastewater discharge and the long-term environmental impacts of decentralized sewer infrastructure.

One resident told the board she and her husband were forced to leave a home in Hurleyville after well problems, saying the town’s action addressed a “reality” rural homeowners can face when water resources are strained.

Another resident pointed to decades-old water quality issues in White Lake as an example of how wastewater impacts can persist long after development occurs.

According to the adopted law, the town’s current zoning regulations do not adequately address community water systems, package wastewater treatment plants and other decentralized infrastructure as distinct land uses. The law states that Highland has not adopted specific siting standards, setback requirements, performance standards, financial security requirements or decommissioning provisions for such facilities.

The law also notes that package plants and decentralized infrastructure are regulated by multiple state and federal agencies, including the New York State Department of Environmental Conservation, the New York State Department of Health, the Public Service Commission and, where applicable, the Delaware River Basin Commission. Town officials emphasized that the moratorium is not intended to prohibit such systems, but to pause local land-use approvals while Highland develops its own regulatory framework.

Officials also said no current applications involving package plants are pending before the town, though Pizzolato said the town had been informed that a proposal may be forthcoming that could be affected by the moratorium.

Moratorium on data centers

The board also approved a separate 12-month moratorium on data centers.

Officials cited growing statewide discussion over the rapid expansion of artificial intelligence infrastructure and concerns about the large amounts of electricity and water required by many facilities.

During the hearing, residents raised concerns about diesel generators, noise, air pollution and energy consumption associated with large-scale data centers.

The town attorney said the local law was drafted using definitions similar to those found in proposed state legislation and other municipal moratoriums.

The law cites concerns about electrical demand, groundwater consumption, noise, visual impacts and compatibility with Highland’s rural character. It also states that the town’s zoning regulations and comprehensive plan were not developed with large-scale data centers in mind and require further review.

Board members noted that no data center proposals are currently pending before the town, but argued that local governments should prepare before projects are proposed.

“There is proposed state legislation regarding data centers,” Pizzolato said. “We are trying to look for further protections for our individual town.”

“We want to make sure that that doesn’t happen to our community,” he added, referring to reports of large-scale data center development elsewhere.

The board said the moratorium will give the town time to study the issue, monitor state legislation and determine whether additional local regulations are needed.

Both measures were approved unanimously.