Molitor: State data center delay is hypocritical
The New York State Legislature passed a one-year moratorium on new data center construction, currently awaiting Governor Hochul's approval. Assemblyman Andrew Molitor opposed the legislation, arguing it removes local control and creates a double standard by allowing state-backed AI projects to develop data centers while restricting private development. The bill also includes new requirements for environmental impact reports and utility service classifications for large energy users.
The New York State Legislature has passed a bill instituting a one-year moratorium on new data center construction, with the legislation now awaiting Governor Kathy Hochul's signature. Assemblyman Andrew Molitor, R-Westfield, and state Sen. George Borrello publicly opposed the measure, citing concerns about local control and potential hypocrisy within state policy.
Assemblyman Molitor criticized the bill on the Assembly floor, arguing that it diminishes local governments' ability to approve data center projects while simultaneously allowing the state's $500 million Empire AI project, which includes a supercomputing facility at the State University at Buffalo, to proceed with its own data center development. He also raised specific questions regarding potential exceptions for redeveloping brownfield sites, like the former NRG power plant in Dunkirk, which is now owned by Genover and has been identified as a possible future data center location.
In addition to the construction pause, the bill mandates public hearings for data center permits and requires the Department of Environmental Conservation to produce an environmental impact report on statewide data center development. It also proposes amendments to state Public Service Law, requiring utility corporations to establish independent service classifications for large energy and water users, and prohibits rate changes unless data center proposals include such classifications. The legislation also directs NYSERDA and other bodies to determine energy efficiency goals and requires data centers to increase their reliance on renewable energy, while providing community benefits and preventing adverse local water impacts.
Molitor expressed his belief that the bill highlights a critical issue with the state's grid capacity and transmission infrastructure, suggesting that robust energy systems would negate the need for state-level intervention and allow local governments to make decisions based on community benefits like increased tax revenue. He concluded that while the bill has some positive aspects, his concerns about local control and energy infrastructure prevented his support.