Governor Hochul Announces Strongest Community Investment Framework In The Nation To Protect Communities From Exploitative Data Center Development
New York Governor Kathy Hochul announced the release of a statewide Host Community Investment Framework for Data Center Development, building on an existing moratorium. This framework provides guidance for local governments to negotiate with developers, recommending at least $1 million per megawatt in community investments. The initiative aims to protect communities from exploitative projects and ensure they benefit from data center development across the state.
Governor Kathy Hochul announced the release of New York's first statewide Host Community Investment Framework for Data Center Development, fulfilling a commitment from Executive Order No. 62. This framework provides crucial guidance for local governments to use in negotiations with major tech companies, aiming to protect communities from potentially exploitative data center projects and ensure they receive fair benefits.
The voluntary framework suggests a community investment benchmark of $1 million for every megawatt of utility demand associated with a data center project. This recommendation acknowledges the significant land, energy, and infrastructure requirements of data centers compared to their relatively low number of permanent jobs. The Framework is designed as a flexible template, allowing localities to tailor commitments, including contributions to public infrastructure, housing, workforce training, and environmental mitigation efforts.
Key aspects of the Framework include