Debate data centers on facts, not moratoriums

A growing misconception has taken hold about data centers. We hear they will overload our electric grid, drive up electric bills, strain local water supplies, and threaten Long Island's quality of life. These questions deserve serious answers and should be evaluated through facts, not assumptions.

That’s why New York's one-year moratorium on new data centers, an effort by the State Legislature to impose tougher restrictions, and local bans under consideration in Islip and Brookhaven towns, are so misguided. These policies ignore the state's existing regulatory safeguards and put Long Island at a competitive disadvantage.

Rather than allowing each proposal to be evaluated on its merits, a moratorium halts investment and eliminates jobs while billions of dollars in economic opportunity are lured to neighboring states that aggressively compete for these projects. New York already has one of the most rigorous project review processes in the nation.

Before any project is approved, the New York Independent System Operator, the Long Island Power Authority, and state regulators determine whether the electric grid can reliably serve the project's additional power demands. If reliability cannot be maintained, the project does not move forward.

Another common misconception is that data centers will automatically increase utility bills. An analysis by Charles River Associates found that large-load customers typically pay for their own interconnection costs, fund the infrastructure they require and pay for the electricity they consume. Additional revenue can help spread fixed utility costs across a larger customer base, easing pressure on rates rather than increasing them.

The proposed project in Brookhaven Town follows that model. The developer, not ratepayers, would fund the new substation and other infrastructure necessary to serve the facility.

Concerns about water supply and usage are taken seriously. The Brookhaven project is designed with a closed-loop water system, which requires it to be filled once with an Olympic-size swimming pool's worth of water. Furthermore, water usage is anticipated to be equal to or less than the previously proposed warehouse use. Priorities seem out of place now — up to 70% of all water pumped by the Suffolk County Water Authority during the summer is used for outdoor lawn irrigation.

Projects are reviewed, infrastructure needs are identified, impacts to the environment are analyzed. Developers are required to pay their share.

If approved, the Brookhaven data center would represent one of the most significant economic development opportunities our region has seen in decades. Infrastructure for the project would support thousands of well-paying union jobs while generating more than a billion dollars in private investment. Once operational, the facility would create highly skilled technical careers and provide tens of millions of dollars in new local tax revenue over its lifetime. Those revenues could help strengthen our schools, support police, fire and emergency medical services, improve local infrastructure, and provide a critical source of funding as Brookhaven prepares for the imminent loss of revenue from closure of the town landfill.

Whether it is the state, county or town, moratoriums would stop responsible projects before the facts are even considered. At a time when communities across our region are looking for new sources of economic growth and new ways to fund essential public services, that is a price we simply cannot afford.

We cannot make a mistake: Data centers are not just about the future; they are needed now for everyday functions. Virginia, Texas, Ohio, and Pennsylvania are actively competing for these investments because they recognize they bring jobs, tax revenue, and long-term economic growth. There is a significant difference between careful review and blanket prohibition. We invite vigorous review under the regulatory mechanisms already in place, but the recent statewide moratorium is not the answer.

This guest essay reflects the views of Matthew Aracich, president of the Building and Construction Trades Council of Nassau and Suffolk Counties