Hochul risks Trump’s fury as she signs nation’s first data center moratorium
New York Governor Kathy Hochul has signed an executive order enacting a year-long statewide moratorium on large data center construction. The measure aims to protect the state's environment and energy grid from the demands of AI-driven facilities. This decision makes New York the first state to implement such a pause, mandating regulators to develop new environmental, energy, and water standards for data centers.
Governor Kathy Hochul has signed an executive order imposing a year-long moratorium on the construction of large data centers in New York, making it the first state in the nation to enact such a measure. The decision, announced in Brooklyn, aims to safeguard the state's environment and energy infrastructure from the high power and water demands of artificial intelligence-driven hyperscale facilities. Governor Hochul stated that "progress shouldn't arrive with a higher utility bill, deleted water supply or noise pollution," emphasizing the need to address these challenges.
The move comes amid a national debate on AI industry regulation and despite opposition from figures such as former President Donald Trump, who argues that such regulations could hinder job creation and give China a technological advantage. The Data Center Coalition, a trade association, also voiced strong opposition, with Dan Diorio warning that the moratorium would divert investments and jobs away from New York.
While the state Legislature had previously approved its own moratorium bill, Governor Hochul chose an executive order for immediate implementation, citing the complexity of the legislative bill. The order halts state permitting for new large data centers and directs regulators to establish standards addressing environmental impacts, energy demand, and water usage. The decision carries political implications for Hochul, especially given upcoming elections, and has drawn criticism from Republican challenger Nassau County Executive Bruce Blakeman, who advocates for local government negotiations with tech companies instead.