Hochul links clean power push to New York’s data center demands
Gov. Kathy Hochul announced a one-year data center moratorium is in place in New York and outlined proposed state policies to manage growing electricity demand from data centers. She called for developers to pay more of the costs their projects place on communities and the grid, suggesting terms such as no tax breaks and substantial community benefits. Hochul also urged data center operators to reduce energy, land, water, and noise demands through more efficient approaches.
Governor Kathy Hochul addressed climate and business leaders at a Ceres Climate Week event, outlining New York's strategy to expand its power supply while regulating the electricity consumption of rapidly growing data centers. She highlighted 95 large-scale clean energy projects, including solar, wind, hydroelectric, and offshore wind, that could provide 10.5 gigawatts of capacity. Hochul stressed the importance of balancing affordable and reliable electricity with climate goals and industrial demands, urging investors to support clean energy initiatives statewide.
The Governor's remarks specifically mentioned five proposed data centers in St. Lawrence County as an example of significant electricity demand, potentially consuming as much power as a new nuclear reactor. Hochul advocated for local governments to retain decision-making power over data center acceptance but suggested the state should assist smaller communities in negotiating with large developers. She proposed new terms for developers, including no tax breaks, self-provided power, or substantial grid payments, and community benefits of $1 million per megawatt of power used.
Hochul confirmed that a one-year data center moratorium is currently in place in New York, with the state actively developing subsequent policies. She urged data center operators to innovate with more efficient practices to reduce energy, land, water, and noise impacts, acknowledging the power demands of AI facilities. The governor also expressed her ambition for a major expansion of nuclear generation and linked data center policy to broader economic development and grid reliability, particularly in the face of severe weather events.