New York Governor Kathy Hochul Discusses Statewide Data Center Moratorium
Governor Kathy Hochul discussed New York's statewide moratorium on data centers, making it the first state to impose such a measure. She emphasized the need for data centers to address their impact on the energy grid, water supply, pollution, and taxpayer costs, advocating for companies to bring their own power or pay a premium for grid use, and opposing tax breaks. The policy faces pushback from an unnamed Energy Secretary.
New York Governor Kathy Hochul announced a statewide moratorium on data centers, aiming to position New York as the first state to implement such a policy. She stated that the initiative is intended to ensure the state can "win the global race for AI dominance" while "getting it right" regarding data center development.
The Governor's policy requires data center companies to provide comprehensive information about their facilities' potential impact on the energy grid, water supply, pollution, and taxpayer costs. Hochul emphasized that data center operators should either generate their own power or pay a premium for utilizing the state's energy grid. She also outlined a policy against providing tax breaks for these facilities, asserting that communities should derive substantial benefits.
Governor Hochul defended the moratorium against criticism, including from an unnamed Energy Secretary who reportedly claimed her approach was "exactly backwards." Hochul clarified that her focus is on "hyperscale big guys," noting that a single 150-megawatt facility can consume as much power as 50,000 houses. She challenged critics to propose alternative solutions for managing such high energy demands, advocating for data centers that use less power and water, are less disruptive, and produce less noise.