
New York state energy experts give overview on data centers in rural areas
A forum in Glens Falls, New York, convened energy experts to discuss the impacts of AI and data centers on rural areas, including environmental, energy grid, and economic concerns. Discussions highlighted New York's statewide data center moratorium and widespread public worry over development in rural regions. Experts presented on data center resource consumption and the strain on the state's aging power infrastructure.
The Adirondack Research Consortium recently hosted a community forum in Glens Falls, New York, bringing together energy professionals to discuss the multifaceted impacts of AI and data center energy consumption, particularly in rural areas. The event, which included members from state agencies, universities, and various sectors, underscored the contentious nature of data center development, with some invited speakers opting out due to the topic's sensitivity. A pre-forum survey revealed that nearly all attendees expressed significant worries about the societal and environmental issues linked to AI and data centers.
Mark Watson, a former program manager from the New York State Energy Research and Development Authority (NYSERDA), provided an overview of data centers' community impacts. He noted concerns like developers using nondisclosure agreements with local officials, limiting public access to project details. Watson highlighted the immense resource demands, stating large data centers can use as much power as 100,000 homes and millions of gallons of water daily, with two-thirds of recent developments located in water-stressed regions. He also linked data centers to climate and air pollution from gas and diesel generators and pointed out their disproportionate impact on marginalized communities. While acknowledging the temporary economic benefits of construction jobs and potential tax revenue, Watson cautioned that tax incentives often reduce actual gains.
Kevin Lanahan, senior vice president of external affairs and corporate communications at the New York Independent System Operator (NYISO), addressed the state's declining energy reserves. He cited factors such as aging infrastructure
—with many generators 50-70 years old
—changing winter conditions, electrification, and the high demands of AI computing. Lanahan explained that retiring one gigawatt of fossil fuel generation requires three gigawatts of renewable energy to compensate, a replacement rate New York is not currently meeting due to permitting challenges, federal policies, and high construction costs. Despite Governor Kathy Hochul enacting a one-year moratorium on data centers in July, developers have not indicated a slowdown in their interest in New York, and significant upgrades would be needed for new facilities to safely connect to the grid.