Appeals Court Delivers Blow to North Tonawanda Crypto Operation, Reinforces New York’s Climate Law

NORTH TONAWANDA, NY —

Today, the New York State Appellate Division, Third Department, ruled that New York’s Public Service Commission (PSC) must examine the emissions impacts of the 2022 sale of the Fortistar fracked gas plant in North Tonawanda to cryptocurrency company Digihost (now operating as Digi Power X) under New York’s Climate Leadership and Community Protection Act (CLCPA).

Read the full decision here.

The decision delivers a legal defeat to the fossil-fueled cryptomining operation, which appealed a November 2024 Supreme Court ruling affirming the PSC’s authority, and obligation, to fully assess and evaluate mitigating the climate impacts of the Fortistar sale under the CLCPA.

The Appellate Division also found that the PSC still has not completed a rigorous CLCPA analysis and must do so now.

At a moment when New York State is rolling back key climate protections, the ruling is especially significant. It reinforces state agencies’ legal responsibility to curb harmful pollution, protect frontline communities, and uphold New York’s landmark climate law.

“Clean Air applauds this decision and this is a hard fought victory for the community members on the front lines in North Tonawanda suffering pollution and quality of life issues from Fortistar. The decision shows the significance of New York’s landmark climate law as we are now dealing with the aftermath of the Governor rolling back the CLCPA. Regulators must do their jobs to protect New Yorkers and it should not have to come down to litigation from community groups to force the consideration of the impacts of fossil fuel emissions in this case,” said Chris Murawski, executive director, Clean Air Coalition of Western New York.

“With the proliferation of even more data centers, AI hyperscalers, and crypto mines across New York, it is clear that the Public Service Commission can no longer ignore the climate impacts of its decisions and should follow the law,” said Roger Downs, conservation director for the Sierra Club Atlantic Chapter. “The PSC’s lack of concern for the emissions from the Fortistar Plant have endangered the air quality for North Tonawanda, a community already burdened with a disproportionate amount of pollution. There will be dozens of future cases like this one, and if there is to be justice for everyday New Yorkers who simply want breathable air, then the PSC must fulfill its legal and moral obligations.”

“This decision is a wake-up call for state agencies and for data centers, and shows that New York’s landmark climate law remains a critical tool for protecting our communities and safeguarding our state’s future. In spite of recent attacks on our climate law, today’s ruling confirms that it is very much alive and kicking,” said Dror Ladin, senior attorney at Earthjustice.

Background:

In 2022, the PSC approved cryptominer Digihost International’s purchase of the rarely utilized 55-megawatt Fortistar North Tonawanda gas plant without fully evaluating its climate impacts under New York’s landmark climate law, the CLCPA. Digihost’s use of the Fortistar plant to power 24/7 cryptomining has resulted in a dramatic surge in greenhouse gas emissions and local air, water, and extreme noise pollution. Since Digihost began its cryptomining operations, greenhouse gas emissions and pollution levels at the facility have risen exponentially. The cryptomine is emitting hundreds of thousands of tons of greenhouse gases annually, directly undermining the climate requirements the Legislature established in the CLCPA.

In response to these harms, the Clean Air Coalition of Western New York and Sierra Club, represented by Earthjustice, filed a lawsuit with the New York State Supreme Court of Albany County seeking to ensure that the PSC follows the legal obligations established by the CLCPA. The judge ruled in November 2024 that the PSC must conduct a proper CLCPA analysis, including whether and how to mitigate the emissions consequences of th e purchase. Advocates have called on the PSC to hold Digihost accountable under the CLCPA, encouraging New Yorkers to submit public comments last summer to the PSC opposing the sale.