BeYONCE: The Key Way Gov. Hochul Can Protect New Yorkers From Data Centers Spiking Our Bills

Today, Governor Hochul announced that the New York State Public Service Commission (PSC) will hold a proceeding to look at how data centers could pay their fair share for energy grid upgrades. This proceeding offers an important first step toward tackling energy costs associated with data centers. But in order to comprehensively protect New Yorkers, a policy must be pursued that requires data centers to produce their own renewable power and add renewable energy to the grid.

“Governor Hochul is right to protect New Yorkers from being forced to subsidize the extremely energy-intensive AI data center industry,” said Liz Moran, New York Policy Advocate at Earthjustice. “Data centers are expanding at an alarming rate across the country, leading to skyrocketing energy bills, massive increases in air and water pollution, and even more reliance on expensive fossil fuels. New Yorkers need the Governor and the Legislature to lead the nation on this issue by requiring data centers to bring their own clean, safe renewables as defined under the climate law, and provide new renewable energy to the grid. That’s the most important way to ensure AI data center expansion won’t become New York’s next affordability and environmental crisis.”

Read more about Earthjustice’s policy recommendations for managing the impacts of AI data centers.

Ample evidence shows that building new fossil fuel infrastructure to power data centers drives up utility rates for ratepayers, while renewable energy paired with storage is far cheaper and far less polluting for host communities.

Without proactive legislative action, everyday New Yorkers will be left to pay not only for the massive energy consumption of data centers, but also for the fossil fuel infrastructure built to power facilities that may never materialize. This all comes as New Yorkers are already paying triple for energy from previous years while utilities that will serve data centers are raking in record profits, and data center proposals are already starting to crop up in the state.

States that previously welcomed and subsidized unchecked data center expansion have since experienced buyer’s remorse, and are now adopting policies to protect ratepayers and communities. Lawmakers are urged to learn from these states by holding tech companies accountable for their energy use and environmental impacts, rejecting fossil fuel expansion, and protecting working families from rising energy bills.