Yeah, yeah—I know it’s not really a data center ban.
It’s a moratorium barring state approvals of hyperscale data centers (those using 50 megawatts or more of power) for up to one year.
But that’s not the point.
The point is that Downstate New York, once again, has found the rope, the one it uses to suffocate its Upstate cousins.
Let’s rewind the clock.
It’s 2008, and everyone is talking about hydraulic fracturing, aka fracking, the process by which underground rock layers are blasted with a high-pressure mix of water, sand, and chemicals to release trapped oil and natural gas.
The economically depressed Southern Tier of New York, along the Pennsylvania border, is rich in such shale (rock) formations.
Localities there debate the pros and cons. When you’re in the middle of nowhere, economics and the environment are not abstractions—they’re about survival.
Eventually, in 2014, those conversations are silenced by a statewide fracking ban, something pushed heavily by a primary challenger to Governor Andrew Cuomo, leaving him with little political choice. That challenger, needless to say, is from New York City.
Meanwhile, nearby Pennsylvania and Ohio continue to cash in.
Fast forward to 2011, when ridesharing services begin in New York City. Existing commercial licensing infrastructure in the city allows this to proceed, while New York State law prohibits the use of personal vehicles in this capacity.
That means that Upstate New York has to wait six more years for Uber and Lyft. In fact, New York State is the last state in the continental US to allow ridesharing.
And that gets us to these hyperscale data centers, used to support cloud computing and, of course, AI.
By definition, they use a massive amount of power, potentially driving up electricity costs for those in the vicinity.
They also require millions of gallons of fresh water for cooling, make a lot of noise, and result in a relatively modest number of permanent jobs.
Finally, they are the backbone of an industry that sells itself as Brahma but might actually be Shiva, at least from a societal employment standpoint.
All this, and the powers that be often seek tax breaks to boot.
In other words, the plot is worthy of rigorous debate—just not at the state level.
The author of the legislation that resulted in a parallel executive order (courtesy Governor Kathy Hochul) is State Senator Kristen Gonzalez from, yes, New York City—Brooklyn to be exact. Brooklyn, at last check, is nowhere near the proposed facilities.
Then there’s Niagara County, home to its namesake waterfall that provides hydroelectric power, lying in a cool climate near two Great Lakes (i.e. fresh water that can be used for further cooling), and the site of abundant industrial infrastructure based on a manufacturing past.
The city of Niagara Falls (NY) is an eyesore, the victim of a loss of geographic relevance—that is, until now.
But, alas, New York City, located seven hours away, always knows what’s best.
And big tech, when confronted with a data center ban, knows something too—where to find the other seven Great Lakes states.