New York Urges Data Centers to Fund Communities $1 Million per Megawatt

New York Gov. Kathy Hochul is urging local governments to seek community investments of at least $1 million per megawatt of electricity demand from developers proposing new data centers. The voluntary framework is intended to ensure communities share in the projects’ long-term economic value, particularly because data centers generate relatively few local jobs compared with traditional manufacturing. The recommendation follows New York’s moratorium on large new data centers and reflects growing concerns nationwide about their heavy use of electricity and water, rising utility costs, and limited local economic benefits. In Texas and other states, officials and lawmakers are pursuing reviews, disclosure requirements, or legislation aimed at limiting the effects of rapid data-center expansion, while a Reuters/Ipsos poll found that only about one-third of Americans support the current pace of construction and that most would oppose a facility in their own community.