Gov. Hochul holds Henrietta roundtable on NY data center construction moratorium

Governor Kathy Hochul convened a roundtable discussion in Henrietta, New York, to gather feedback on her executive order imposing a year-long moratorium on large-scale data center construction across the state. The order, signed two weeks prior, specifically targets hyperscale data centers drawing over 50 megawatts of energy, which is comparable to the consumption of 50,000 homes.

During the discussion at Henrietta Town Court, attendees, including County Executive Adam Bello and Henrietta Town Supervisor Stephen Shultz, raised concerns about the moratorium's implications. Bello highlighted potential strain on the electrical grid, noting projections that data centers could account for over 20% of the country's electrical use by 2035 without proper frameworks. Shultz indicated Henrietta is developing local laws to ensure data centers maintain or increase grid capacity and sought state support for such municipal actions. Genesee County Legislator Christian Yunker also pointed to insufficient water supply as a major issue, especially relevant to projects like the 2.2 million square foot Stream Data Center in Genesee County, which has been paused by the order.

Governor Hochul emphasized that while the state aims to create a "statewide template" for data center development, including potential legislation on tax breaks, local control would remain paramount. She stated her job is to provide communities with a blueprint for what to demand if they choose to host a data center. The governor's office and the Department of Environmental Conservation (DEC) will review environmental impacts over the next year before deciding whether to lift the ban. Republican gubernatorial candidate Bruce Blakeman criticized the moratorium, arguing it would hinder New York's economic and technological growth due to already high energy costs.