Hochul says data center moratorium is an effort to protect large job-creators like Micron
Governor Kathy Hochul's moratorium on hyperscale data centers in New York aims to manage the state's finite energy resources, prioritizing job creators like Micron over data centers due to their lower permanent job creation. The move has faced criticism from the construction industry, which argues against the disruption of projects where significant investments have already been made. In response, Empire State Development will develop a framework requiring data centers to make community investments, while the state explores new power generation, including nuclear energy.
New York Governor Kathy Hochul has enacted a moratorium on hyperscale data centers, citing the state's finite energy resources and the increasing strain on its power grid, as warned by the Independent System Operator (NYISO). Hochul stated in an interview with Capital Tonight that this action prioritizes large job-creating industries, like semiconductor manufacturer Micron, over data centers, which she argues create fewer permanent jobs.
The NYISO reports 14,000 megawatts of large load requests, including those from data centers, semiconductor fabs, and advanced manufacturing, are waiting to connect to the grid, threatening future energy supply without more power generation. The construction industry has expressed strong opposition to the moratorium, questioning why projects with significant prior investment and submitted permits are being halted. Hochul countered by highlighting the long-term construction benefits of projects like Micron's, which is projected to bring 20 years of construction work.
Over the next 60 days, Empire State Development will create a "community investment framework" to mandate that data centers contribute significantly to host communities through upgrades to infrastructure such as water, sewer, roads, and broadband. This initiative, however, raises concerns among construction advocates who fear it could push data center development to other states. Governor Hochul is also focused on increasing New York's power generation, including pursuing federal approvals for new nuclear plants and repowering older facilities, to lower costs for residents and ensure grid reliability amid rising demand.