New York lawmakers grapple with data center demand

By Marie J. French | 02/02/2026 06:13 AM EST

There’s clear interest from Democrats to take some steps to address potential demand for data centers in New York but no clear consensus.

New York Gov. Kathy Hochul speaks onstage.

Gov. Kathy Hochul (D) has called for making sure new data centers pay for any increased costs or bring their own power. John Lamparski/Getty Images for Concordia Annual Summit

ALBANY, New York — Democratic lawmakers in New York want to play a bigger role in regulating massive data centers to support artificial intelligence.

Gov. Kathy Hochul (D) has previously hailed the potential benefits of New York taking the lead on artificial intelligence. But amid rising energy costs and reliability issues, the potential for huge new data centers — which largely do not yet exist in New York — has spurred concern across the country.

“The governor has made clear that she is interested in growing our economy,” said Doreen Harris, president and CEO of the New York State Energy Research and Development Authority, at a budget hearing Wednesday. “These projects often do not come with the jobs that would come with a growing economy.

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Democratic lawmakers and Hochul are wrestling with how to address the issue. The governor in her State of the State address called for making sure new data centers pay for any increased costs or bring their own power.

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