'THE WAY THE GAME WORKS': New York halts large data center construction
New York State has enacted a one-year moratorium on the construction of large new data centers, with Governor Kathy Hochul citing concerns over energy consumption, carbon footprint, and utility costs. This policy aims to give lawmakers time to craft new regulations for the industry. The move contrasts with the situation in neighboring Pennsylvania, where rural families are selling land to data center developers for significant profits.
New York Governor Kathy Hochul has enacted a one-year moratorium on the construction of large new data centers across New York State. This decision makes New York the first state to implement such a ban, aimed at providing lawmakers with time to develop new regulations for the industry. Governor Hochul expressed concerns that data centers, powered by fossil fuels, contribute to the state's carbon footprint and increase utility costs for New Yorkers.
The discussion highlighted a contrast with Pennsylvania, where residents are reportedly selling farmland to data center developers, generating significant wealth. Panelists Jason Chaffetz and Jackie DeAngelis debated the policy's merits, with Chaffetz calling it a "dumb policy" that is "regressive" and reminiscent of past fracking bans that hindered economic development in New York compared to neighboring states. He also noted that hyperscale companies are increasingly involved in lobbying efforts.
DeAngelis, however, questioned why major tech companies are not more publicly advocating for the benefits of data centers, such as creating their own water and power. The conversation also touched upon the public pushback rural families face for selling their land to big tech, and the broader impact of data centers on rural America. The panelists also referenced past controversies, like headlines linking deadly bacteria in wastewater to data centers in Cheyenne, Wyoming, as examples of scare tactics influencing public opinion.