New York Governor Kathy Hochul has recommended that local governments collect a community investment fund of at least 1 million dollars (approx. 1.3 billion won) per megawatt (MW) from developers seeking to build data centers in the state, Reuters reported.

The recommendation requires developers to invest at least 1 million dollars per 1 MW of power demand so that local communities can equitably share in the long-term economic value of the data centers.

This comes two months after New York became the first state government in the U.S. to pause the construction of large-scale data centers.

Last July, Governor Hochul signed an executive order temporarily halting environmental permits for up to one year for the construction of large data centers consuming 50 MW or more of power.

Hope Knight, president and CEO of Empire State Development, said in a statement, "The growing demand for data centers driven by the innovation economy must align with shared standards that benefit local communities," adding, "Data centers are not major job creators locally, so their economic development profile differs from traditional manufacturing."

Amid pushes to build large AI data centers across the United States, local residents are voicing opposition, arguing that data centers consume massive amounts of water and electrical energy and lead to higher local electricity bills.

In Texas, where the scale of data centers applying for power grid connection has reached 474 gigawatts (GW)—equivalent to 474 nuclear reactors—Governor Greg Abbott ordered a comprehensive review and audit of all data center projects undergoing grid interconnection procedures on September 3, effectively halting data center development.

Republican members of the U.S. House of Representatives plan to introduce a bill to prevent electricity rate hikes linked to data center expansion, and dozens of U.S. states are also pushing to introduce similar legislation, according to Reuters.