New York Legislature Enacts Data Center Moratorium and Regulations; Group Calls for Veto
New York State has enacted a one-year moratorium and new regulations for data centers, including environmental reviews and renewable energy mandates. A guest column by New Yorkers for Affordable Energy argues against these policies, urging Governor Hochul to veto the moratorium bill, stating they threaten job creation and energy goals.
The New York State Legislature has recently enacted a one-year moratorium on data centers, coupled with new regulations that mandate environmental reviews, direct the Public Service Commission to establish a new data center rate classification, and impose aggressive renewable energy requirements for on-site generation. This move is seen by some as a deterrent for developers, potentially signaling that New York is "closed for business" and falling behind other states like Virginia, Texas, and Georgia in next-generation economic development.
Daniel Ortega, executive director of New Yorkers for Affordable Energy, argues in a guest column that while the intention to have data centers pay for infrastructure and on-site generation is agreeable, the proposed regulations threaten job creation and energy goals. He highlights that requiring increasing amounts of intermittent renewable energy, starting at 33% by 2030, is unrealistic and expensive, advocating for the inclusion of clean-burning natural gas and nuclear energy. Ortega emphasizes the essential role of data centers in supporting daily digital, banking, and healthcare services for New Yorkers, cautioning against outsourcing these jobs and benefits to other states. He urges Governor Kathy Hochul to veto the data center moratorium bill and seek better solutions that protect ratepayers and the environment while supporting economic growth.