New York’s proposed environmental review of data centers will examine how the facilities affect electric customers and host communities, including water supplies, air quality, noise and public health.
The Public Service Commission issued a draft scope Sept. 17 as part of its proceeding on how data centers and other major electricity users connect to the grid. That scope will establish the subjects covered by a broader environmental impact statement.
The process follows Gov. Kathy Hochul’s July executive order directing a review of data center impacts and a pause on state permits while the review proceeds.
Who pays for new demand
The commission’s Energize NY Development proceeding is intended to modernize grid connections for large energy users while protecting other customers from additional costs.
The proposed review covers both the construction and operation of large data centers and possible changes to connection procedures and cost-allocation rules.
The commission issued a positive declaration under the State Environmental Quality Review Act, finding that the proposed action could have significant environmental effects requiring further analysis. That finding initiates environmental review; it does not approve a particular data center.
The scope reaches beyond electricity
The draft identifies potential effects on land, surface water and groundwater, floodplains, wildlife, farmland, historic resources, transportation and energy use.
It also calls for assessing noise, odor, lighting, public health, community character and effects on disadvantaged communities. The analysis would consider whether the proposed changes support the state’s climate law.
The environmental statement would distinguish construction impacts from continuing operational effects and evaluate alternatives, including taking no action. It would also examine effects that cannot be avoided or reduced.
The scope is a plan for the investigation, rather than a completed finding about the effects of individual projects.
Lawmakers seek more public input
State Sen. Liz Krueger and Assemblymember Anna Kelles, joined by 54 other legislators, asked Hochul and commission Chair Rory Christian for more time to review the scope and for public hearings.
Their Oct. 16 letter sought a total comment period of 120 days and five hearings. Kelles said the scope would shape what the state investigates about potential effects on energy costs, water, air quality, farmland and communities.
Krueger said the process needed broader public awareness and participation, arguing that residents may not recognize the significance of a technical proceeding on large electricity loads.
The lawmakers tied their request to the Responsible Data Center Development Act passed by the Legislature in June.
After considering comments, the commission can revise and accept a final scope. That document will guide preparation of the environmental impact statement and the next stages of the state’s review.
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