New York Gov. Kathy Hochul has announced a statewide Community Investment Framework aimed at giving local governments greater leverage when negotiating with data center developers.
The voluntary framework, developed by Empire State Development, recommends that developers contribute at least $1 million for every megawatt of utility demand associated with a data center. A 50-megawatt facility, for example, would have a recommended community investment level of $50 million.
Local governments can negotiate how and when those investments are made based on local priorities.
The framework comes as data centers expand to support growing demand for artificial intelligence and other technologies. These facilities can require significant amounts of land, electricity, water and infrastructure while generating relatively few permanent jobs. The guidance is intended to help communities account for those demands while securing investments that benefit residents.
"In the absence of federal leadership, someone has to write the rules and New York is leading the way,” Hochul said. "As artificial intelligence rapidly changes the world we know, I won’t allow New York’s communities and the families who live here to be taken advantage of and that’s why I’ll continue stepping up, putting New Yorkers first."
Potential investments include roads, water and sewer systems, public transit, parks, affordable and workforce housing, workforce training, schools, child care, broadband access, public safety and small business support. The framework also encourages developers to address potential impacts involving water use, noise, lighting, landscaping and building design.
Local governments are encouraged to identify priorities before negotiations begin, involve residents and stakeholders, establish clear investment commitments and require additional contributions if a data center expands or increases its infrastructure demands.
The framework follows Executive Order No. 62, issued July 14, 2026, which established a year-long statewide moratorium on new large data centers. The state is continuing work on standards, including an environmental review of data centers' effects on energy demand, water and air quality.
Once the regulatory framework is finalized, the moratorium is expected to end and projects may proceed subject to state and local approvals.
