Assemblymember Didi Barrett (D-Dutchess/Columbia) and Senator Kristen Gonzalez (D-Brooklyn/Queens/Manhattan) announced that they introduced the Accountability of Costs for Data Centers (AC/DC) Act (A.9039-A/S.8540). This legislation will create a new utility rate classification for large energy use facilities to ensure that the costs associated with building and operating data centers, AI and cryptocurrency mining facilities are not borne by residential ratepayers.

“We all know New York is experiencing an alarming energy affordability crisis. Almost daily, my office hears from constituents, small businesses, even local libraries, saddled with fast-rising energy costs and struggling to pay their bills,” said Assemblymember Didi Barrett. “At the same time, the New York Independent System Operator (NYISO) estimates that an additional 1,600 MW of power could be needed by 2030, driven primarily by data centers, AI and cryptocurrency mining. This common-sense legislation makes these large energy-use customers pay their fair share, enabling innovation without saddling residential ratepayers with all the costs.”

“The development of data centers disproportionately impacts working class families and small businesses. As the demand for energy rises with the adoption of AI and new technologies, everyday consumers are the ones burdened with the cost of data centers’ energy needs,” said Senator Gonzalez. “I’m proud to sponsor the Accountability of Costs for Data Centers Act, and I’m committed to fighting for affordability for all New Yorkers.”

"PULP thanks Assemblymember Barrett and Senator Gonzalez for their leadership when it comes to prioritizing the protection of rate payers from costs associated with large energy users, such as AI data centers. New York must learn from states including Georgia, Oregon, Virginia, and Pennsylvania where AI data centers often use tremendous amounts of electricity, creating reliability concerns for the grid, and increased costs on ratepayers,” said Laurie Wheelock, Esq. Executive Director and Counsel with the Public Utility Law Project (PULP). “Now is the time to act, and PULP believes that the AC/DC Act is an important step towards shielding ratepayers from the potential financial burden that these energy-intensive entities can create, by clearly making the AI data centers pay for their own costs."

On October 23rd, The Assembly Energy Committee held a hearing to examine protecting residential ratepayers from the increased energy needs of data centers. At the hearing, several speakers pointed out the need for a new utility rate classification for large energy use facilities to ensure that these costs aren’t passed onto other customers.