NY Comptroller Warns Big Tech on Data Center Expansion

DiNapoli urges tech firms to be more transparent and community-focused with data center projects.

Published on Mar. 4, 2026

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New York State Comptroller Tom DiNapoli has sent letters to 19 major technology companies, including Meta and TeraWulf, expressing concerns about the rapid growth of large-scale data centers across the state. DiNapoli warned that these data center projects could drive up electricity costs for consumers, strain power grids, consume large amounts of water, and impact local land use if not properly managed.

Why it matters

As data centers become increasingly crucial to the operations of Big Tech firms, there are growing concerns about the impact these facilities can have on local communities and ratepayers. DiNapoli is urging tech companies to take a more community-focused approach and ensure they are not shifting the burden of infrastructure costs onto consumers.

The details

In his letters, DiNapoli called on the tech companies to work more transparently with local governments, operate their data centers in a way that minimizes strain on power grids and water resources, and pay for their own infrastructure improvements rather than passing those costs on to ratepayers.

  • DiNapoli sent the letters to 19 tech firms on March 1, 2026.

The players

Tom DiNapoli

New York State Comptroller, the state's top financial watchdog.

Meta

The parent company of Facebook, a major technology firm with a growing data center footprint.

TeraWulf

A cryptocurrency mining company that operates large-scale data centers.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

DiNapoli's warnings highlight the growing tensions between Big Tech's data center expansion and the need to protect local communities from the potential negative impacts. As these facilities become more ubiquitous, there will likely be increased scrutiny on how tech firms manage their energy and water usage, as well as their relationships with the communities hosting their data centers.