New York bill proposes ending state subsidies for data centers
Reinvent Albany is advocating for a bill in New York that would prohibit data centers from receiving state subsidies and low-cost power. The group argues these subsidies are morally indefensible, citing high utility usage and lack of benefit for New Yorkers, using a JP Morgan data center as an example. The proposed legislation seeks to reform how data center projects are funded in the state.
Reinvent Albany, an organization focused on state government reform, is supporting a bill introduced by New York State Assemblywoman Anna Kelles and State Senator Rachel May. The proposed legislation aims to prevent data centers from receiving sales tax abatements, property tax abatements, and access to most low-cost power from the New York Power Authority.
The group contends that these subsidies are "bad policy and morally indefensible" because data centers, often owned by multi-billion-dollar companies, consume vast amounts of electricity and water without clear benefits for New York residents. They highlight seven data centers already receiving power at 83 percent below household rates.
Reinvent Albany also cited a JP Morgan data center downstate that reportedly received $77 million in subsidies, creating only one job. The bill comes as new data center projects are being considered in the state, including one in the Town of Massena and another being marketed in the Town of Leray.