Assemblymember Jonathan Jacobson (D-104) is sponsoring a new bill (A09064) that prohibits utilities from passing along the infrastructure costs of increased electricity demands from data centers and chip manufacturers to everyday consumers. The bill requires that these costs would only be borne by those involved with the building or operation of the data centers and chip manufacturing facilities.

“Residents in my district are already feeling the strain of rising utility rates. But the added energy demand from data centers and chip companies threatens to drive up rates even further,” Jacobson said. “To meet this demand, utilities will need to expand and upgrade the grid, and my bill would stop them from passing on those costs to other customers.”

With IBM’s new Quantum Data Center in Poughkeepsie and the Micron semiconductor plant near Syracuse, a technology boom is hitting New York. It is driven by demand for chips and data centers for artificial intelligence, but that revolution requires an intense amount of energy.

For example, a single chip fabrication plant can consume as much electricity in a year as it takes to power 50,000 homes. While data centers (the number of which have more than quadrupled in the U.S. since 2018) could account for as much as 6.7%–12% of total U.S. electricity consumption by 2028, according to recent reports. Utilities will have to upgrade the grid and expand to meet this need, and New York State’s utilities are no exception.

“These technologies are a boon to the local economy, but those gains can’t be made on the backs of everyday consumers. Residential customers and small businesses should not foot the bill for increased utility costs due to big tech. Big tech can afford it, we can’t!” Jacobson said.