Gov. Hochul hears feedback on data center moratorium

Governor Kathy Hochul recently hosted a roundtable discussion in Henrietta, New York, to collect feedback on her executive order implementing a statewide moratorium on hyperscale data center construction. The order, signed two weeks prior, halts the development of data centers consuming over 50 megawatts for up to a year, pending further review.

Local leaders present, including Henrietta Town Supervisor Stephen Schultz and Genesee County legislator Christian Younker, expressed concerns regarding the environmental impacts and resource demands of data centers. Schultz highlighted the potential strain on New York's power grid, noting that without regulation, data centers could account for over 20% of the country's electrical use by 2035. He mentioned Henrietta is working on a local law to ensure data centers contribute to energy neutrality and sought state support to legally fortify such local ordinances. Younker brought attention to the insufficient water supply in Genesee County, particularly in light of the moratorium's impact on a large 2.2 million square foot Stream Data Centers project in the area.

Governor Hochul stated her intention to develop a statewide framework, potentially including laws against tax breaks for large data centers and a "Community Investment Framework" to guide local communities that choose to host data centers. Her office and the Department of Environmental Conservation (DEC) will conduct an environmental impact review. The future of the moratorium will depend on the findings of this review.

While the discussion revealed local challenges, the governor also addressed critics who argue the ban could hinder New York's economic and technological growth. Republican gubernatorial candidate Bruce Blakeman, for instance, reportedly opposes the ban, citing New York's already high energy costs.