Community Investment Framework
Background
Governor Kathy Hochul announced the release of the nation’s first statewide Host Community Investment Framework for Data Center Development, delivering on a commitment made through Executive Order No. 62 to provide local governments with a new tool to ensure communities hosting data centers directly share in the economic benefits generated by these projects. Executive Order No. 62 established a first-in-the-nation moratorium on data center development and directed Empire State Development to formulate the Community Investment Framework.
The voluntary Framework establishes a recommended community investment benchmark of $1 million for every megawatt of utility demand associated with a data center project, recognizing the significant land, energy and infrastructure requirements of data centers and their comparatively lower number of permanent jobs per megawatt of electric demand. The benchmark is intended to help communities negotiate meaningful, long-term investments that reflect the scale of the projects they host.
What is the Community Investment Framework (CIF)?
The CIF serves as a voluntary mechanism to help local governments, municipalities, and
Industrial Development Agencies (IDAs) negotiate effectively with prospective data center
developers and/or operators, focusing on four core pillars:
- Establishing Good Neighbor Commitments
- Enforcing Workforce & Labor Standards
- Standardizing Transparency & Accountability
- Specifying Targeted Investments
How the Framework Should Be Used
For Local Governments and Municipalities: The CIF can serve as a practical roadmap
during negotiations with developers to help secure tangible community benefits, structure
investment funds, and address local infrastructure or environmental needs.
For Community Stakeholders: The CIF offers a helpful reference for identifying eligible
local investment areas—such as public infrastructure upgrades, broadband expansion,
childcare facilities, K-12 educational programming, and blight remediation—to ensure local
growth translates directly into lasting public value.
CIF Guidance
CIF Template Example
ESD strongly encourages communities to share their completed CIFs to help establish a compilation of best practices.
Please share completed versions to [email protected].