Top NYC business group opposes Gov. Hochul’s one-year data center ban
Governor Kathy Hochul enacted a one-year statewide moratorium on new hyperscale data center construction in New York, citing concerns about energy grid strain and the need for careful introduction. New York City's top business advocacy group, along with other critics, has opposed the ban, arguing it is counterproductive and will hinder the state's competitiveness in the AI sector.
Governor Kathy Hochul recently enacted a one-year statewide moratorium on the construction of new hyperscale data centers requiring at least 50 megawatts of power. The governor defended her executive order, stating the delay is necessary for the state to carefully integrate these facilities and address the significant strain they place on the energy grid, noting 30 pending applications.
However, the decision has drawn sharp criticism from various groups. Steve Fulop, CEO of the Partnership for the City of New York, which represents 300 major firms, called the ban counterproductive and anti-commerce, warning it would make New York less competitive in the artificial intelligence boom compared to other states like Pennsylvania. He emphasized that a one-year delay does not solve underlying issues and sends a negative signal to the private sector. New York City officials also expressed concern that the ban would impede the city's goal to lead in AI development.
Opposition also came from construction trades and some lawmakers, with state Sen. Kristen Gonzalez, a Democratic Socialists of America member, stating that technology should not pollute water, strain the energy grid, or raise utility bills. Republican gubernatorial candidate Bruce Blakeman accused Hochul of backing the moratorium for political gain with the far left. Despite these criticisms, Hochul's team insisted the decision was not politically motivated, asserting the state must take the lead to ensure both protection for New Yorkers and certainty for companies.