New York announces data center investment framework and lead pipe replacement grants

New York Governor Kathy Hochul has announced two major infrastructure and community development initiatives.

First, the state has introduced the nation’s first statewide Host Community Investment Framework for data centers. This framework provides local governments with a template to negotiate community benefits, recommending a benchmark of $1 million for every megawatt of utility demand. The guidance aims to secure investments for local infrastructure, such as roads, water systems, schools, and affordable housing, while promoting local hiring and prevailing wages. It also encourages transparency regarding environmental impacts like water use and noise.

Second, the state is awarding over $130 million in Lead Infrastructure Forgiveness and Transformation Grants to 24 municipalities. These funds, supported by the federal Infrastructure Investment and Jobs Act, are intended to identify and replace lead service lines to protect public health. Priority was given to communities with lower median household incomes or higher poverty rates. Notable recipients include the City of Ithaca, the Village of Johnson City, the City of Oneonta, and the Mohawk Valley Water Authority.