Enacts the stop subsidizing data centers act

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

• Democratic16

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

◆ The sponsor's argument

Why Rachel May says this is needed

New York uses economic development incentives to support projects that create jobs, strengthen regional economies and deliver long-term public value. Those tools can be appropriate when a project produces benefits that justify the public investment. Data centers present a different problem. They can require enormous amounts of electricity while creating relatively few permanent jobs. That imbalance matters. A facility that places substantial demand on the grid, requires costly infrastructure planning and receives public bene- fits should be expected to provide a meaningful return to the public. This bill draws clearer lines around that expectation. It ends several forms of discounted state power for data centers, including economic power allocations, Recharge New York power and expansion, replacement and preservation power. These programs are intended to support employ- ment, economic growth and broader public benefit. They should not be used for facilities whose main public impact may be increased power demand. The bill also adds guardrails for local financial assistance. Indus- trial development agency benefits for data center projects would be subject to stronger accountability, including mandatory clawbacks when promised jobs are not created or maintained. The bill caps assistance at $25,000 per anticipated full-time job and bars assistance for data center projects capable of consuming more than 20 megawatts during normal operations. Finally, the bill strengthens environmental review for very large ener- gy-consuming projects. Projects capable of consuming more than 50 mega- watts during normal operations would have the Department of Environ- mental Conservation as the mandatory lead agency, ensuring consistent statewide review for projects with major energy and environmental impli- cations. The bill also requires an environmental impact statement and consultation for actions located near federally recognized Indian nations. This legislation does not prohibit data centers from operating in New York. It says that public subsidies and discounted power should be reserved for projects that provide a clear and durable public benefit. As electricity demand rises and infrastructure costs grow, New York must be more careful about what it subsidizes, who benefits and who pays.

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.