Interview: New York Gov. Kathy Hochul talks state's one-year data center pause

New York Governor Kathy Hochul announced a one-year pause on new large-scale data center projects statewide, aiming to provide localities with a comprehensive framework for future development.

Speaking with NewsChannel 9 Senior Reporter Andrew Donovan, Governor Hochul, drawing on her 14 years in local government, explained that the moratorium would allow state agencies to develop guidelines, preventing local governments from having to independently navigate the complexities of data center proposals. She emphasized the goal is to ensure communities receive benefits and that residents do not bear increased utility costs due to hyperscale data centers.

Hochul distinguished data centers from other economic development projects like Micron, stating that while she aggressively pursues projects that create long-term, high-paying jobs, data centers offer very few employees for their enormous energy consumption. She highlighted the state's need to prioritize resources, including hydroelectric power, for industries such as semiconductor manufacturing (Micron, IBM, GlobalFoundries) that generate significant employment. Hochul noted that while the state is working to generate more nuclear power, companies building data centers should address their own power needs in the interim.

She clarified that the Micron project, which is rapidly expanding and expected to create thousands of jobs manufacturing memory chips for the AI revolution, is not affected by the data center pause. The governor expressed pride in Micron's commitments and its partnership in transforming the upstate economy, mentioning ongoing efforts to build housing and infrastructure in Syracuse. She also briefly noted Oswego County's potential for nuclear expansion due to its experienced workforce and available land.