Framing data centers as users of large amounts of power that do not create many jobs, New York State Governor Kathy Hochul is setting some ground rules. During her 2026 State of the State address, where she also called for a major push into nuclear power, Hochul announced a plan to prevent the costs related to data centers’ energy needs from being passed on to state residents.
As part of the new Energize NY Development program, the plan will push a greater share of grid and infrastructure costs back onto data center operators. That’s something other U.S. states are doing as well.
According to the Governor’s office, the state will target large building projects that create “exceptional demand” on the power grid without providing an adequate amount of new jobs or community benefits. The office is not mincing words about the consequences for projects that meet this threshold.
“[To] prevent rising costs for everyday consumers, the State will enforce a simple standard: these industries must pay more; if they do not, they must supply their own energy,” a statement on the Governor’s website reads.
Governor Hochul has not yet announced how this plan would be enforced, or any exact limits on power usage.
While that news may concern some companies involved in large-scale construction, the Energize NY Development program’s other focuses may provide some relief.
Without giving specifics, the Governor’s office announced that grid connections will be streamlined, helping keep projects on schedule instead of being tied up in “red tape.” The program also calls for clearer rules and timelines for studies, approvals, and construction, so developers have a better sense of what to expect, and when.
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