AI data center growth prompts debate in central New York

Growing demand for data centers tied to AI is drawing more scrutiny in central New York, where communities are considering what large computing facilities could mean for local infrastructure, development and public resources.

CNY Solidarity hosted a community presentation Sunday focused on how data centers operate and why they require significant electricity and water. Jennifer Stromer-Galley, a Syracuse University professor, said the goal was to demystify the technology, explain its resource needs and clarify debates over a statewide moratorium.

Speakers said data centers can bring economic benefits, especially through property taxes and sales taxes, while also helping redevelop former industrial sites. Stromer-Galley said jobs are not the primary benefit, noting that property tax revenue is typically more significant because the facilities have large footprints and make substantial purchases.

Attendee Melleny Hale said communities need to weigh benefits against costs and avoid one-sided assumptions. The discussion follows Gov. Kathy Hochul’s signing of what state officials described as the nation’s first statewide moratorium on certain large data centers, as more proposals are expected to fuel local debate over energy use, water consumption and broader impacts.