Lee Zeldin criticizes New York Governor Hochul's data center moratorium

News Clip8:37Fox Business·NY·7/17/2026

New York Governor Kathy Hochul signed a one-year data center moratorium due to utility expenses, a decision criticized by Lee Zeldin as bad energy policy. The discussion also covers nationwide protests against data centers, AI, and the need for leaders to balance economic benefits with environmental concerns like electricity and water usage.

moratoriumoppositionelectricitywatergovernment
Gov: New York Governor Kathy Hochul, US Presidency

The segment on Fox Business' "Mornings with Maria" discussed New York Governor Kathy Hochul's one-year data center moratorium, signed via executive order due to concerns about higher utility expenses. Lee Zeldin criticized this decision, arguing that data centers are not the primary cause of rising utility costs and that the moratorium reflects poor energy policy. He contrasted this with a federal initiative where the President has pushed hyperscalers to manage their own electricity costs.

Zeldin emphasized that most Americans want the U.S. to be the global leader in artificial intelligence and that a nuanced approach to data center development is crucial. He suggested that local communities should evaluate projects based on their impact on utility bills, grid contribution (net taker or provider), and water sustainability, advocating for closed-loop, 100% recyclable water systems. He contended that Governor Hochul's action was a short-term political calculation based on polling for her reelection campaign rather than a leadership decision that would benefit the state long-term by attracting investment.

The discussion also touched on nationwide protests against data centers and AI, with demonstrators calling for protection of local communities and national security. Zeldin argued that policies setting back states like New York and California contribute to out-migration and that a blanket federal moratorium on data centers would be ill-advised, given that many projects can reduce energy bills and efficiently manage resources.