ALBANY, N.Y. — New York State has released new guidelines for how local governments can negotiate with developers interested in building large data centers. It comes amid the state’s year-long pause on the construction of large data centers.
The state says the framework aims to protect communities from “exploitative data center development.” As News10NBC has covered, data centers often require massive amounts of energy to power computer servers and large amounts of water to cool the computers, raising concerns over environmental harm. However, they can provide tax benefits to towns.
The framework recommends that communities make data centers pay at least $1 million per megawatt of power associated with the project. For example, a 50-megawatt data center would carry a recommended investment of at least $50 million. That investment could be used for roads, schools, childcare, public safety, or other local government programs.
The framework also recommends that local governments create “a good neighbor commitment” with developers over water consumption, noise, lighting, and building design. That commitment could also include prioritizing local hiring of construction workers. The state advises data centers to report their water and energy usage, along with their employment numbers, to local governments. You can read the full document here.
Ultimately, it’s up to local governments to decide what to do once the data center moratorium ends. For example, the Henrietta town supervisor wants any potential data center plans to fall under incentive zoning, rather than a special use permit, to give the town more of a say.
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