Business groups, unions clash with environmentalists over NY data center pause

News ClipThe Poughkeepsie Journal·NY·7/15/2026

New York Governor Kathy Hochul has enacted a year-long statewide moratorium on environmental permits for large data centers using 50 or more megawatts of power. The executive order aims to assess impacts on ratepayers, the environment, and the energy grid. This move has garnered mixed reactions from business groups, unions, and environmental advocates.

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Gov: New York Governor's Office, New York State Legislature, U.S. Senator Kirsten Gillibrand, State Senator Liz Krueger

New York Governor Kathy Hochul has signed an executive order implementing a year-long statewide moratorium on environmental permits for data centers requiring 50 or more megawatts of power. The pause, enacted on July 14, aims to allow the state to better understand the potential impacts of these facilities on New York ratepayers, the environment, energy infrastructure, and local communities. Additionally, the Governor's office will develop an environmental impact statement, create community guidance, and explore state legislation to repeal certain tax exemptions for large data centers.

Business and trade organizations, represented by Upstate United, immediately opposed the moratorium, arguing that it undermines local control and jeopardizes economic growth, job creation, and potential investments in the state. Justin Wilcox, Executive Director of Upstate United, criticized the ban for prolonging uncertainty for companies and sending