* Water use: Almost always a red herring or non-issue, unless the DC is being built in an area with water shortages. DC's use a lot of water, but their use is negligible compared to many other industries.
* Neighborhood appearance: They're not particularly pretty to have in your back yard, but much less ugly than, say, a factory. They're not inherently polluting.
* Power draw: This is a legitimate concern as DC's use an enormous amount of electricity. In the short run, it could make sense for deep-pocketed investors to subsidize residential or non-DC power consumption to keep everyone's electric bills from skyrocketing. Longer term, power companies will need to build much more generating infrastructure. I'd love to see a carbon tax to encourage the construction of renewable (or nuclear) power. Sadly, the current US administration seems intent on vice-maxing and ruining as much as they can for future generations.
* AI-driven job displacement: I think this is the real worry people have. The water use thing is an excuse people are looking for to oppose AI.
IMHO, that last one is the crux of the issue, and banning DCs from being built in New York will do absolutely nothing to alleviate this concern. The tech billionaire class has been harping about how they'll make money for investors by automating everyone's job, and the people have noticed.
Say rain water is leaking into your house from two holes in the roof: one is 1 meter in diameter, the other is 1cm. Any effort you spend plugging the 1cm hole is a distraction from the 1m hole you really need to focus on.
You could make an argument that agriculture is different because we need agricultural products to live. But we don't need those specific products to live (alfalfa, almonds, etc), and they could be grown far more efficiently if water were priced by market rates.