Albany, NY – In a letter sent to Governor Hochul and the state legislature today, nearly 500 small business owners from across New York called for the passage and signing of a bill that would enact a three-year moratorium on the construction of new hyperscale data centers in the state. Momentum and support for the bill is growing rapidly, as last week more than 100 state legislators, activists and concerned residents rallied at the Capitol in favor of the moratorium.

The letter states, in part: New York’s small businesses are the economic engines of our communities, accounting for 98% of all businesses across the state… The explosive growth of data centers threatens our businesses, especially in robust tourism and agricultural areas. This expansion is rapidly generating more fossil fuel pollution, straining water resources, devouring land, and raising electricity prices… In other states, large data center developments have received substantial tax abatements and incentives, raising concerns about shifting costs onto existing businesses and residents… What our communities receive in return for the air, water, and noise pollution is simply a short-term surge in construction jobs followed by very few permanent employment opportunities for residents. 

“Across the Finger Lakes and New York State, communities are being pressured to accept massive data center developments with promises of jobs and tax revenue that we know will never materialize,” said Yvonne Taylor, Vice President of Seneca Lake Guardian, President of the National Coalition Against Cryptomining. “Meanwhile, longtime New York businesses, farms and local employers are already struggling with rising energy costs, climate impacts and threats to clean water and air. New Yorkers should not be forced to sacrifice their businesses that have sustained this state for generations so out-of-state corporations can profit from energy-hungry AI data centers. We need a moratorium on new data center development so communities can put real protections in place before more damage is done.”

“For six generations, our family has worked this land and helped sustain the Finger Lakes agricultural economy,” said Tina Hazlitt of Sawmill Creek Vineyards. “Facilities like Greenidge Generation threaten the resources our farms and wineries depend on. New Yorkers are being asked to accept massive industrial projects without clear information about future energy demand, water use or pollution impacts. We need transparency and a moratorium on large data center expansion until our questions and concerns are answered.”

“Businesses across the Finger Lakes depend on clean water, a stable climate and the natural beauty that makes this region a world-class destination,” said Vinny Aliperti, owner of Billsboro Winery. “We already experience the harms of Greenidge Generation in our community – from cryptomining-driven pollution and noise to massive energy use – and now the company wants to dramatically expand operations through an AI data center that could triple its energy consumption. That’s not sustainable for our region or the local businesses that rely on healthy environments. New York lawmakers must support a pause on new data center development until communities fully understand the long-term impacts.”

“Data centers will result in much higher electric prices for ordinary citizens and small businesses already reeling from the for profit utility companies. Data centers don’t bring long term jobs, and any economic benefits for the state are far from certain given the likelihood that many AI companies could see a collapse in the near future leaving the tax payers of New York with a major cleanup bill.” — KC Ellis, President of Grunge Works Studios, LLC

“Resources such as water and energy are being stretched to the max already. These data centers will break our energy system and threaten our dwindling fresh water supply that businesses like mine across the state rely on.” — Adrianne Picciano, Owner of The Dirt Diva

“Data Center development needs to be stopped right now on a State level. This pause gives us time to review all the impacts on community water and power, and for us to come up with a thoughtful State wide plan.” — Jeffrey Scales, Owner of Sustainable Rentals LLC

“A moratorium is the proper manner to preserve the status quo while studying the issue of environmental impacts of data centers in the State. The New York Department of State’s own publication entitled ‘Land Use Moratoria’ even suggests moratoria as an appropriate municipal measure to ‘Prevent rush to development; Prevent inefficient and ill-conceived growth; Address a new kind of use…; Prevent hasty decisions that would disadvantage landowners and the public; Prevent immediate construction that might be inconsistent with the provisions of a future plan.’ Every reason applies to data center proliferation. In my opinion, this must happen at the state level. To do otherwise will result in multiple local governments adopting individual moratoria thereby creating a patchwork of municipalities with their own regulations and others without. State level guidance is needed to address this new kind of use that will have far-reaching environmental consequences if not planned properly.” — J. Theodore Fink, AICP, President of GREENPLAN Inc.