Key facts
- New York Governor Kathy Hochul recommends developers of new data centers provide at least $1 million per megawatt in community investments.
- The proposed investments aim to ensure communities benefit equitably from data center projects.
- Data centers are not major local job generators, differing from traditional manufacturing.
- The expansion of data centers is increasing power demand and electricity bills nationwide.
- A recent Reuters/Ipsos poll indicated that only one in three Americans approve of the current pace of data center construction.
New York Governor Kathy Hochul is proposing that local governments require developers of new data centers to invest at least $1 million per megawatt of utility demand in the communities where they are built. This recommendation, detailed in a document released Tuesday, aims to ensure that local areas benefit economically from the construction of these facilities.
The proposal comes months after New York implemented a moratorium on new large data centers, reflecting a broader trend of growing opposition to data center expansion across the U.S. This expansion is contributing to increased power demand and higher electricity bills, leading to bipartisan political backlash.
Empire State Development President Hope Knight stated that the growing demand for data centers must be met with shared standards benefiting communities, noting that data centers do not create the same level of local jobs as traditional manufacturing.
In parallel, Texas Governor Greg Abbott has directed state regulators to penalize data centers that do not disclose their water consumption. Meanwhile, Republican lawmakers in the U.S. House of Representatives are planning legislation to curb electricity bill increases linked to data center growth, with similar bills being introduced in state legislatures nationwide. A recent Reuters/Ipsos poll found that a majority of Americans oppose building data centers in their own communities.