Riley introduces bill aimed at data center energy costs
Congressman Josh Riley and Congressman Jeff Van Drew introduced the FAIR Data Act, a bill aimed at ensuring data center companies cover the costs associated with their energy demands rather than passing them to ratepayers. This legislation seeks to protect Upstate New Yorkers and small businesses from rising energy bills. Concurrently, New York Governor Kathy Hochul signed an executive order implementing a statewide moratorium on data center development.
Congressman Josh Riley, representing New York's 19th Congressional District, introduced the FAIR Data Act on July 13, co-sponsored by Congressman Jeff Van Drew of New Jersey. The proposed federal legislation aims to prevent data center projects from increasing energy costs for residents and small businesses, particularly in regions like Upstate New York.
The bill's core provision mandates that corporate consumers, identified as the drivers of demand for data centers, bear the costs associated with these energy-intensive developments and new infrastructure. Congressman Riley emphasized that "Upstate New Yorkers are already paying through the nose for electricity" and should not subsidize "Big Tech's" profits, urging out-of-state tech companies to "pay their own way."
This legislative effort comes amidst proposed data center developments within Riley's district, specifically mentioning Lansing and Oneonta. Congressman Van Drew echoed the sentiment, stating that while AI growth is beneficial, it must be handled responsibly, ensuring families and small businesses are not burdened with higher utility bills due to major data center projects. He expressed pride in joining Riley to prioritize constituents.
In related news, New York Governor Kathy Hochul independently signed an executive order on July 14 to implement a "first-in-the-nation statewide moratorium on data centers" in New York, further highlighting the state's attention to the impacts of data center expansion.