After legislature passes one-year data center block, Gray, others urge Hochul to veto

New York's state legislature has passed a bill that would impose a one-year statewide moratorium on new large-scale data center projects. If signed into law by Governor Kathy Hochul, it would be the first such statewide block to take effect in the U.S. The bill passed with significant support in both the Senate (47-17) and the Assembly (103-38).

However, Assemblymember Scott A. Gray (R-Watertown) and three Republican colleagues have sent a letter to Governor Hochul, urging her to veto the legislation. They argue that a statewide moratorium is overly aggressive, would deter technological investment in New York, and centralizes decisions that should remain at the local government level. Gray emphasized that local zoning and siting boards are best equipped to address concerns like noise, water, and power usage.

Governor Hochul has previously expressed a similar view, stating on May 28 that data centers are a local land-use issue, not necessarily a statewide concern. Gray also highlighted existing rigorous approval processes, including those from the New York Independent System Operator, and criticized the bill's requirement for new data centers to rely solely on renewable energy, noting it excludes nuclear power. Gray is sponsoring his own bill, the High Energy User Act, which proposes that data centers bear the costs of grid expansion, bans open-loop cooling systems, and sets setback requirements, aiming to address concerns without a full moratorium.

The moratorium bill has not yet reached the Governor's desk; the legislature has until the end of the year to send it to her for a decision.