Everywhere you look, there is a growing concern over the threats posed by A.I. data centers.  We have relied on data centers for years, but the burgeoning construction of new, more massive ones has hit a nerve in an increasingly cost-conscious America.  

Until recently, when we asked where our stored electronic information went, we were told “the cloud.”  Of course, there is no information “cloud”; our data is stored in computers.  Stored in computers that are housed all over the country – indeed sometimes the world.

The number of computers to store our data, process online transactions, and handle our internet information requests and computations, is mind-boggling.  With the rise of the use of A.I., so-called “artificial intelligence,” the projected demand for computer space and capabilities is mushrooming and accelerating.

With that demand comes the need for more and more access to computers, computers that are stored in massive buildings, and now being built all around the nation at an increasing speed.  Those computer buildings are known as “data centers” and their thirst for energy and often water (for cooling) is virtually insatiable.

The construction and use of these data centers is driving a rise in utility rates all across the nation and New York is not immune.  Beyond those costs these massive data centers can be “energy hogs.”  According to New York regulators, the electricity demand of proposed data center projects totals more than 11,000 MW, equivalent to around 1.5 times the demand of all New York State households combined.

During the past legislative session, lawmakers took a step toward slowing down the data center construction “race” to allow time to formulate policies to ensure the public is protected.  The legislation, the Responsible Data Center Development Act, places a one-year moratorium on data center development while reasonable safeguards are created.  

The “ball” will soon be in Governor Hochul’s “court.”  It is the governor who will decide if this legislative “pause” button gets pushed.  

From the public’s perspective, it makes perfect sense to take a breath before embarking headlong into a data centers construction boom.  If the bill is enacted, New York policy makers will have one year to put adequate safeguarding in place. Those safeguards should these five proposals:

Insulate the public from getting stuck with the bill if the data center flops or falls short.  New Yorkers should not be left “holding the bag” if data center projects go belly up or greatly underperform.

Make data centers’ permits and contracts available to the public without secrecy.  One national review of data centers found that required permitting for data centers were shielded from public disclosures.  New York has such exemptions in its open public records law that can be used to keep these contracts secret.  They must not be.

There must be regular, ongoing monitoring and public reporting of water use, as well as noise impacts.

Ensure that not one residential utility ratepayer dollar should be – directly or indirectly — used to subsidize data centers.  Data centers are expected to need a fantastic amount of electricity; they must not be driving up utility rates for New Yorkers.

Not one electron from the existing grid should be used to power data centers.  Another way to jack up utility rates to subsidize data centers is by diverting current electricity in the grid to power data centers.  Then ratepayers are on the hook to come up with new energy capacity.

Of course, none of these protections can take place without the governor’s approval of the Responsible Data Center Development Act.  New Yorkers have heard a lot about the need to tackle skyrocketing utility rates.  This legislation does something about it.