Hochul pushes back as Trump blasts her data center moratorium

Governor Kathy Hochul of New York is defending her recently imposed one-year moratorium on hyperscale data centers, which she enacted via executive order. The pause, targeting data centers seeking 50 megawatts or more of electricity, has drawn criticism from various groups, including business associations and former President Donald Trump. Trump publicly called the decision "terrible," arguing it would divert jobs and tax revenue, which he labeled "liquid gold," to other states.

Governor Hochul countered Trump's remarks, stating that the moratorium's purpose is to ensure that data center development benefits surrounding communities by establishing clear regulatory rules, rather than allowing unrestricted growth. She emphasized the importance of preventing higher utility bills, depleted water supplies, and noise pollution, which can accompany rapid data center expansion.

Assemblymember Didi Barrett, D-Hudson, highlighted that over 30 large data centers are planned for New York, potentially consuming as much power as all of New York City, according to the New York Independent System Operator. This rapid growth, Barrett noted, underscores the urgency behind the Governor's action. While groups like the Long Island Contractors’ Association express concerns about job losses, others like NetChoice, a trade association, advocate for alternative approaches seen in other states, where tech companies pledge to cover energy costs.

Hochul remains confident that a clear regulatory framework will ultimately attract companies back to New York on the state's terms. She has not yet indicated whether she will sign a related bill passed by the Legislature that also calls for a moratorium and other data center regulations, with Barrett hoping discussions will continue.