Data center pause, AI campaign ads lead NY governor's race this week
New York Governor Kathy Hochul signed a one-year executive order banning new hyperscale data center development statewide to assess impacts on ratepayers, the environment, and the energy grid. This move has sparked criticism from state labor and business groups, as well as Republican challenger Bruce Blakeman, who argue it hinders economic growth and job creation.
New York Governor Kathy Hochul has enacted a statewide one-year moratorium on new hyperscale data center development, an executive order she signed on July 24. The governor justified the pause by citing a need to understand the comprehensive impacts on New York ratepayers, the environment, the energy grid, and local communities. Hochul stated that she wants to prevent increased utility rates and ensure data center projects include a robust community investment framework. She also expressed a desire to re-evaluate tax breaks for these facilities and require them to manage their own power generation or pay a premium for energy.
The decision has faced significant pushback from various groups, including state labor and business organizations, who argue the moratorium undermines local control and economic development, potentially costing union jobs. Republican challenger Nassau County Executive Bruce Blakeman also criticized the move, advocating for a collaborative approach with developers to ensure water recirculation and energy self-sufficiency for data center projects.
The article also touches on political campaign financing, noting significant contributions to Hochul's campaign, including from Buffalo Bills owners Terry and Kim Pegula. Additionally, it highlights controversies surrounding Blakeman's campaign for its use of AI-generated advertisements, some of which reportedly lack proper disclosure, prompting swift criticism from Hochul's campaign.