Enacts the homegrown energy act

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic3

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Kristen Gonzalez says this is needed

The rapid expansion of large-scale data centers is fundamentally reshap- ing New York's energy landscape, with significant consequences for elec- tric grid reliability, ratepayer costs, and the State's climate goals. According to the New York Independent System Operator's 2025 Power Trends report, electricity demand in New York is projected to increase by as much as 4,000 megawatts by 2030, driven largely by new large-load customers such as data centers and increased electrification. This represents an increase of approximately 1,600 megawatts beyond prior forecasts, requiring substantial new investment in generation and trans- mission infrastructure. These costs are typically socialized across all ratepayers, meaning residential customers and small businesses may bear the financial burden of infrastructure needed to serve a relatively small number of high-demand users. Data centers, fueled by the growth of artificial intelligence, machine learning, and digital services, are among the most energy-intensive types of development. Nationally, data center electricity consumption is projected to grow rapidly, potentially surpassing the equivalent usage of tens of millions of households within the next decade. In New York alone, projections suggest that data center demand could increase by more than 9,000 megawatts in coming years. That is comparable to the total electricity consumption of all households in the State. This surge in demand has real cost impacts. A Bloomberg anal- ysis found that 70 percent of locations experiencing year-over-year wholesale electricity price increases were located within 50 miles of major data center activity. At the same time, national household elec- tricity rates rose by approximately 13 percent in 2025, due in signif- icant part to infrastructure and generation pressures associated with data center growth. Beyond cost impacts, data centers also pose environ- mental and infrastructure challenges. A majority of the electricity used by data centers (estimated at roughly 56 percent) continues to come from fossil fuels, resulting in a carbon footprint significantly higher than the grid average. Even when renewable energy is procured, it can displace clean energy that would otherwise serve broader decarbonization efforts, delaying the retirement of fossil fuel generation. Data centers also require significant water resources for cooling and generate substantial electronic waste due to rapid hardware turnover. Host commu- nities bear many of these localized impacts, including increased grid strain, land use changes, and environmental externalities, without necessarily receiving direct or proportional benefits. At the same time, low- and moderate-income households in these communities are particular- ly vulnerable to rising energy costs. This bill addresses these chal- lenges in a targeted and balanced manner by requiring large data centers (defined as facilities with a peak demand of 20 megawatts or more) to fund direct benefits for the communities in which they are located. Rather than shifting costs onto ratepayers, the bill ensures that these large energy users contribute to mitigating their local impacts. Specif- ically, the legislation requires data center developers to fund programs that either (1) provide direct utility bill credits to residential customers in host communities or (2) invest in eligible residential technologies such as heat pumps, rooftop solar, and battery storage. These measures not only offset cost pressures but also support energy efficiency, electrification, and emissions reductions consistent with New York's climate goals. By prioritizing low- and moderate-income households and allowing host communities to determine their preferred folin of benefit, the bill promotes both equity and local decision-mak- ing. It ensures that the economic and technological growth associated with data centers does not come at the expense of the communities that host them. In doing so, this legisl

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.