Hochul's order of a data center moratorium draws mixed reactions from N.Y.
New York Governor Kathy Hochul issued a statewide executive order halting new data center permits for up to a year while officials develop new rules for energy and water use and community protections. The decision has drawn mixed reactions, welcomed by community groups in Albany concerned about a proposed data center at the Kenwood site by Guild Ventures, but criticized by business advocacy groups who fear it will hinder AI investment in the state.
New York Governor Kathy Hochul has enacted a statewide moratorium on new data center permits through an executive order, which received mixed reactions across the state. The order, issued on Tuesday, halts new state environmental permits for data centers for up to a year, allowing officials time to develop comprehensive statewide regulations concerning energy use, water consumption, and community protections.
The impact of this decision is evident in Albany's South End, where a proposed data center project by developer Guild Ventures at the Kenwood site has faced months of community scrutiny. Eva Bass of the South End Community Collaborative expressed support for the moratorium, viewing it as an opportunity for more community dialogue and engagement. Groups like the Reimagine Albany Coalition and the South End Community Collaborative have consistently raised concerns about water use, air quality, and potential utility cost increases for local residents.
Conversely, Justin Wilcox, executive director of Upstate United, a business advocacy group, criticized the moratorium. He argued that it could undermine New York's aspirations to be a leader in artificial intelligence by deterring major investments and job creation, potentially pushing the tech sector to more welcoming states. Guild Ventures director Michael-Henry Elghanian-Krayem stated the company is reviewing the Governor's action but acknowledged the need for proper industry regulation, asserting that the Kenwood project was designed with environmental and community responsibility in mind.