Hochul discusses data centers and economic development

New York Gov. Kathy Hochul said, as data centers become a bigger part of the American landscape, that she would like to see development that creates more jobs in the long run.

“I would prefer to see something that had more long-term job generation. But in terms of the long-term view of data centers, we have to manage this. There’s interest in our state but also I want to make sure our ratepayers are never affected,” Hochul told reporters Thursday at an event in Buffalo.

The International Business Machines Corporation describes data centers as the backbone of the internet and explains the facilities’ role as storing thousands of networks, data and power.

It’s the power that is among the top concerns of some lawmakers and advocates, especially at a time when ratepayers are seeing higher energy costs.

“I believe that data centers, if they do come to our state, need to provide their own energy source,” Hochul said.

This comes as the town of Alabama, in Genesee County, is the site of a proposed massive $19.4 billon, 2.2 million square foot stream data center. It’s facing strong opposition due to environmental and energy concerns from some residents. The project is estimated to create 125 jobs.

“I do want to see economic development that creates jobs. That’s the whole premise behind this,” Hochul said, but repeated that she “would say for that money and that time, or that scale, I would like to see more jobs created.”

Some lawmakers in the state Legislature, in session for only two more weeks, are pushing for a proposal that would put a temporary three-year moratorium on the construction of new data centers across the state. Supporters say it would allow the state to study the impacts the centers would have on their surrounding communities and the environment.

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