What does moratorium mean for future of Kenwood data center in Albany?
New York Gov. Kathy Hochul enacted a one-year moratorium on new hyperscale data centers, prompting questions about its impact on proposed projects like the Kenwood data center in Albany. Local groups are actively opposing the Kenwood project and advocating for a citywide ban, citing concerns over noise and utility costs. The moratorium includes exemptions for data centers using less than 50 megawatts or serving healthcare facilities, leaving the Kenwood project's status uncertain.
New York Governor Kathy Hochul has signed an executive order instituting a one-year moratorium on new hyperscale data centers across the state. This pause aims to allow the state to assess the implications of data center development, though Hochul explicitly stated it is not a permanent ban.
The executive order includes exemptions for data centers consuming less than 50 megawatts of power or those supporting hospitals and healthcare facilities. The impact of this moratorium on the proposed Kenwood data center in South Albany, owned by Guild Ventures, remains uncertain as the company has yet to submit a formal plan. Assemblymember Gabriella Romero noted that the project might qualify for an exemption, potentially not even based on wattage.
Community opposition, spearheaded by No Kings Collective Albany, continues to be vocal against the Kenwood project and large-scale data centers in general. The group, co-facilitated by Brian Paz Hernandez, advocates for a citywide ban, expressing concerns about noise pollution, utility bill impacts, and a lack of guaranteed long-term jobs. The Albany Common Council, with support from Councilmember Deborah Zamer, voted to endorse the state legislature's previously passed — though not signed by the governor — moratorium proposal, and also acknowledged the city's need for updated zoning regulations for such facilities. Guild Ventures, however, has expressed support for responsible regulation, stating their Kenwood project is designed with environmental and utility considerations in mind.
Separately, a land deal involving Plug Power and Stream Data Centers in Genesee County has been delayed due to the new regulatory process. Meanwhile, companies like GE Vernova are not directly affected, continuing to serve customers in states with more rapid data center development.