By GARRY RAYNO, InDepthNH.org

CONCORD — Banning the construction of new mega data centers for a year would give lawmakers time to study their effects on a small state like New Hampshire, a House committee was told Wednesday.

The centers have proliferated around the country but particularly in Northern Virginia, Silicon Valley, Dallas, Phoenix, and Chicago with many more planned.

Rep. Peter Schmidt, D-Dover, the prime sponsor of House Bill 1265, told the House Commerce and Consumer Affairs Committee his bill would pause construction of the facilities used in developing AI until a legislative study is done on the environmental effects, as well as the impact on electric rates and the noise generated by these facilities.

“We should not open the door without a much more intensive study,” Schmidt said. “This is an opportunity to get ahead of the curve.”

He said the facilities cost about $40 billion to build but only generate about $20 billion, which is not a sustainable business model.

They are “water hogs” using five million gallons of water a day and then discharging it back into the environment at much higher temperatures, which impacts the environment, wildlife and people living near the facilities, who are also impacted by the noise which is a constant hum, Schmidt said.

The facilities are also “electricity hogs,” he said, noting the electric rates have doubled in areas of the country where these facilities are located.

And he said while they generate construction jobs, there are few jobs once the facilities are operating.

“They produce great increases in AI capabilities,” Schmidt said, “but the question is whether we can afford that or not.”

Last year the legislature passed a bill that would allow data centers and crypto mining and other such facilities to be small nuclear system operators off the grid. The small nuclear systems are thought to be five or six years away from development.

Rep. Carry Spier, D-Nashua, noted the state already has a number of small data centers including in Bedford, Manchester and Salem, but do not cause the problems Schmidt talked about.

She asked if there was anything in his bill that would exempt smaller centers or if a center supplied its own electricity.

Schmidt said construction costs could be an indicator, but the bill deals with the large data centers.

He noted they need a study to see what the state is looking at with the large centers.

“They are expanding all over the country,” Schmidt said. “The lure of AI is driving everything and the data centers are part of that.”

He said it is like falling off a cliff. When you first fall you say “it’s good so far,” but that is not the end, he said.

Rep. Wendy Thomas, D-Merrimack, backed the bill saying it was a prudent approach to technology infrastructure development in the states.

The bill would protect New Hampshire’s natural resources, safeguard local communities and allow the legislature to make informed policy decisions about sustainable growth and long term economic resilience, Thomas said.

She said the large 100,000 square foot data centers use up to five megawatts of electricity a day and up to five millions gallons of water a day.

“We have a drought in New Hampshire and we need to put up guardrails in front of the train,” Thomas said.

She said the noise which can be heard more than a mile away from the facility, affects wildlife that depend on hearing such as bats, and the facilities destroy habitat and impact human health because of carbon emissions.

“I am not sure we can stop data centers from coming to New Hampshire,” Thomas said, “but we can protect our environment and we can protect our residents.”

The state needs to come up with a checklist before “these monstrosities come to New Hampshire,” she said.

The bill was opposed by the state Business and Industry Association. DJ Burke, the association’s manager of public policy and advocacy, said his organization is concerned that the language defining data centers and other terms is too vague and subjective and could affect more than its intent.

There has not been a large movement of large data centers to the state, he noted, and some of the concerns raised about water and electricity usage and noise levels have been addressed in the new technology introduced recently.

Of more concern is the message the bill sends to the broader business community, Burke told the committee, noting New Hampshire has the reputation as a business friendly state.

“This is potentially the wrong message to be sending, not just to this sector, but to those looking to move to the state,” Burke said.

The committee did not take any immediate action on the bill.

Garry Rayno may be reached at garry.rayno@yahoo.com.