Energy Secretary Chris Wright responds to New York's AI data center moratorium
New York Governor Kathy Hochul is set to sign an executive order imposing a statewide moratorium on hyperscale data centers for up to a year, citing environmental and energy grid protection. This decision has sparked debate, with critics like Senator John Fetterman arguing it could harm US competitiveness against China. Former Energy Secretary Chris Wright attributes high electricity costs to New York's green energy mandates, not data centers, and suggests data center development can lower energy prices and create jobs.
New York Governor Kathy Hochul is reportedly set to sign an executive order today, imposing the country's first statewide moratorium on hyperscale data centers for up to one year. The governor states the pause is necessary to allow the state to create rules protecting the environment and the energy grid.
This move is generating significant debate and pushback. Senator John Fetterman, a Democrat, publicly commented that such a moratorium would result in China winning. Former Energy Secretary Chris Wright echoed this sentiment during an interview with Angela Brown of The National Desk, arguing that slowing AI infrastructure development in the U.S. could hurt national competitiveness.
Wright emphasized that the core issue in New York is the state's green energy mandates, which he claims drive up electricity costs and have led to decreased electricity production over the past decade. He asserted that data center development, when done correctly, can actually reduce electricity prices, create job opportunities, and generate local tax revenues, citing the Trump administration's "ratepayer protection pledge" as a mechanism to ensure developers invest in electrical infrastructure and offer multi-year freezes on electricity prices. Wright stated that communities with modern data center developments are often thrilled with the economic benefits and stable energy costs.