NY subsidies for Rockland County data centers top $320M, report says
A new report by Reinvent Albany reveals New York agencies have provided over $321 million in subsidies to data centers in Rockland County since 2013, enabling ultra-low-cost power and sales tax exemptions. This report coincides with Governor Kathy Hochul's recently enacted statewide moratorium on new data center construction and her plans for new regulations. The report criticizes the high per-job cost of these subsidies and the significant electricity consumption by data centers.
A new report from government watchdog Reinvent Albany reveals that New York agencies have funneled at least $321 million in subsidies to corporations building data centers in Rockland County since 2013. These subsidies, provided by the Rockland County Development Agency and the New York Power Authority (NYPA), include state and local sales tax exemptions and ultra-low-cost electricity, significantly reducing operating costs for companies like JPMorgan Chase, Bloomberg, and DataBank.
The report highlights that data centers in Rockland County pay a mere $12.88 per megawatt-hour for electricity, a stark contrast to the average New York household's $244. It also critically noted that the 298 "full-time equivalent jobs" created by these facilities cost taxpayers over $1 million per job, making data centers 34 times more subsidized per job than other industries in the state.
Major beneficiaries include JPMorgan Chase, which received over $112 million in total government subsidies, and Bloomberg, which garnered over $68 million in low-cost energy subsidies from NYPA. The report's release coincides with Governor Kathy Hochul's recently enacted statewide moratorium on new data center construction, aimed at developing a regulatory framework to protect the environment and electricity/gas ratepayers. Hochul has also committed to passing legislation to end all sales tax abatements for data centers.
In response, NYPA stated that its ReCharge NY program provides low-cost power allocations to various businesses, accounting for only 2% of its total low-cost power capacity, and claims these allocations are not publicly subsidized. NYPA also clarified that the program supports relatively smaller data centers, not "hyperscalers," and includes reviews to ensure firms meet job-creation and capital investment goals. Reinvent Albany is urging the governor to cut both sales tax and electricity subsidies for data centers.