
Who pays for AI? Groups warn New York’s data center review leaves too much unanswered
A coalition of 24 organizations is urging New York to broaden its environmental review of large AI data centers, citing unanswered questions about electricity costs, water use, pollution and community impacts. The groups say the state’s review framework is too narrow, while the Public Service Commission and New York City have offered their own comments before a final scope is established.
Twenty-four environmental and Finger Lakes organizations, including Earthjustice and Seneca Lake Guardian, are challenging the scope of New York’s proposed environmental review for large data centers. They want the state to examine industrywide impacts, developer responsibility for grid infrastructure and electricity costs, water and air impacts, climate compliance, environmental justice and the possibility of avoiding future data center expansion.
The review follows Gov. Kathy Hochul’s executive order pausing certain state environmental permits for qualifying data centers and directing the Department of Public Service to study their impacts. The Public Service Commission says its draft scope addresses issues including water, air quality, public health and community impacts, but advocates argue it lacks detailed protections and clear agency responsibilities. The commission will consider public comments before issuing a final scope; no permanent ban or project-specific approval has resulted from the process.