Chestnut River data center at former Hampden Paper mill, Holyoke
Also called: Chestnut River Power Data Center, Holyoke Data Center
A Boston company wanted to turn an empty paper mill on Water Street into a 20-megawatt data center costing about $200 million. Many residents objected. The City Council banned new data centers in June 2026, and the developer says it will look for other old factory sites instead.
Where things stand: City Council banned new data centers on June 16, 2026. The developer says it will not fight the ban.
🕒 Latest update (June 16, 2026): City Council voted 9-4 to ban future data centers, ending this plan.
What we know
- 📍 Where100 Water Street, former Hampden Paper mill by the Connecticut River, Holyoke, Hampden County
- 🏢 CompanyChestnut River Power and Infrastructure
- ⚡ Power it needs20 megawatts (about as much as 16,000 homes)
- 🔌 Where the power comes fromWould have used the city utility, Holyoke Gas & Electric.
- ❄️ CoolingDeveloper said water would be recycled
- 💵 Cost$200 million
What happened so far
- Dec 2025The developer contacted Holyoke Gas & Electric about the project.
- May 2026The plan became public at a City Council meeting.
- June 16, 2026City Council voted 9-4 to ban future data centers, ending this plan.
Local votes and rules
🚫 Ban
The City Council voted 9-4 to change zoning so new data centers are banned in Holyoke. The mayor signed it on June 18. It stopped a planned 20-megawatt data center in an old mill on Water Street. The existing Massachusetts Green High Performance Computing Center is exempt.
An aerial photo of the area.
Where this comes from
- Holyoke bans future data centers as Westfield mulls a moratorium · New England Public Media · June 17, 2026
- Developer says communication breakdown doomed Holyoke data center project · Western Mass News · June 17, 2026
- Ban, ban, ban: data center discontent reaches western Massachusetts · The Shoestring · July 2, 2026
- Census geocoder: 100 Water St · US Census Bureau · Oct 8, 2026
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