Servistar Realties had sought more time to advance the project, which it has pursued since 2019. The permit, first approved in 2021, expires at the end of October. Board members said the company had not shown good cause for an extension, pointing to the lack of substantial progress and the fact that Servistar had not bought the land where it planned to build.

The proposed campus would cover more than 150 acres. Servistar representative Paul Corey told the board that the project had been delayed by state tax incentives, disruptions in global markets and federal tariffs that affected supply chains and costs.

Massachusetts codified sales tax breaks for data centers in 2024, but Gov. Maura Healey froze applications for the incentives this summer. Corey said Servistar had been seeking the tax provisions since before it applied for permits and argued that uncertainty over financing and market conditions had slowed the project.

Board Chair William Carellas said the developer had been given the tools to make the project ready for construction, while other board members questioned Servistar’s communication about its difficulties. Vice Chair Cheryl Crowe said the project’s organization did not appear to have been fully worked out before it came before the board.

Members also cited procedural issues: Servistar’s limited liability company status lapsed in late 2024, and the original special permit was not registered with the Hampden County Registry of Deeds. Board member John Bowen said those missed steps raised concerns about the project’s management.

The denial drew angry reactions from some viewers of the online meeting, who unmuted their microphones to criticize the board’s decision. State law gives Servistar 20 days to appeal.

The city had already voted in July to impose a one-year moratorium on data centers. Servistar’s proposal was exempt from that temporary ban because it was already underway, but the permit decision leaves the project without the extension it sought.