New York becomes FIRST STATE to temporarily suspend data centers
Governor Kathy Hochul signed an executive order imposing a one-year moratorium on new hyperscale data center construction in New York, citing concerns about electricity consumption and grid capacity. U.S. Energy Secretary Chris Wright criticized the ban, arguing that data centers can drive down energy costs and that green energy mandates are the real problem. A national day of protest against data centers is planned for concerns including power and water use.
New York Governor Kathy Hochul has signed an executive order implementing a one-year moratorium on the construction of new hyperscale data centers using 50 megawatts or more of power. This marks the first statewide data center ban in the United States, driven by fears that these facilities could overwhelm the state's electricity grid capacity and increase consumer costs. The decision has sparked a debate about the role of data centers in energy consumption and economic development.
U.S. Energy Secretary Chris Wright, speaking on The National Desk, countered the concerns, asserting that data centers, when developed responsibly, can actually help reduce electricity prices and create local economic benefits. He highlighted the Trump administration's "ratepayer protection pledge," which encourages data center developers to invest upfront in electrical infrastructure and offer multi-year freezes on electricity prices for communities. Wright criticized "green energy mandates" in states like New York for driving up energy costs, not data centers.
The Secretary further addressed common criticisms, stating that modern data centers utilize closed-loop systems, minimizing water evaporation, and that new developments often lead to filings to reduce or freeze local electricity rates. He also mentioned a planned "National Day of protest against data centers" focusing on power use, water consumption, and utility bills, which he believes is based on misinformation.