New York data centers need a regional approach

Brookhaven Town Supervisor Dan Panico, a Republican from Center Moriches, has called upon New York State to adopt a regional strategy for managing the proliferation of data centers on Long Island. Panico asserts that without state intervention, local municipalities, facing intense budgetary pressures, may be compelled to approve power- and water-intensive data center projects due to the allure of permit fees and payments in lieu of taxes.

Concerns highlighted by Panico include the existing strain on Long Island's electric grid, which already experiences some of the nation's highest rates, and the insatiable power demands of data centers that could further exacerbate energy costs and capacity issues. He also points to the significant cooling capacity needed, warning about potential impacts on the region's sole-source aquifer. Although advocates for data centers often tout closed-loop water systems, Panico claims these consume substantially more energy and produce concentrated contaminants.

Panico referenced Brookhaven National Laboratory as a site considered for a data center last year by the U.S. Department of Energy, though it was not selected. He also mentioned an unnamed entity currently collaborating with the Long Island Power Authority and the New York Independent System Operator on power needs for a potential proposal in Brookhaven Town, Yaphank. Panico concludes by urging Governor Kathy Hochul and the state legislature to implement safeguards, ensuring data centers pay their fair share and protecting residents from higher electricity costs and reduced access to clean water.