As NY Pauses Data Centers, RI Towns Act on Expansion
Rhode Island towns like Smithfield and Westerly are implementing local bans and moratoriums on data center construction following a deadlock in state-level legislation. These actions come as New York enacted a statewide moratorium and local communities grapple with the significant electricity and water demands of data centers. Developers in Smithfield, Hanton City Investments, submitted an application just before a zoning amendment passed and are appealing a certificate of incompleteness.
As state-level data center legislation in Rhode Island remains stalled, individual towns are taking measures to regulate the energy-intensive developments. New York previously enacted a statewide moratorium on large data centers, but Rhode Island lawmakers failed to pass similar measures, leaving the issue to local communities.
The debate highlights concerns over potential electricity rate impacts and strain on natural resources. A single 50-megawatt data center uses electricity equivalent to 63,500 Rhode Island households monthly, threatening a state power system where costs have risen significantly and 90% of electricity is generated by natural gas.
In response, the Smithfield Town Council voted 4-1 on May 5 to pass a zoning amendment prohibiting data centers in all town districts. This vote came one day after Hanton City Investments submitted an application for a corporate complex, including data centers, which they are now appealing after town officials issued a Second Certificate of Incompleteness. Similarly, the Westerly Town Council unanimously enacted a one-year moratorium on data center construction on July 27 to allow time to study resource demands and emergency services. Governor Daniel McKee has established an AI task force but has not endorsed a statewide ban, pushing regulatory decisions to local town councils and planning boards.