Governor Kathy Hochul hits pause on AI data centers
Governor Kathy Hochul signed an Executive Order enacting a statewide moratorium on new large-scale data centers across New York State. This pause aims to address concerns over energy consumption and rising utility costs driven by AI growth. The move has sparked debate, with some supporting the initiative while others express concerns about economic impact and advocate for a more comprehensive legislative solution.
Governor Kathy Hochul signed an executive order implementing the nation's first moratorium on new hyperscale data centers across New York State. This pause, which could last up to one year, aims to address concerns about the enormous power consumption of data centers, their potential to outpace the state's grid capacity, and the risk of driving up utility costs for New Yorkers.
The decision has generated mixed reactions. Justin Wilcox, Executive Director of Upstate United, criticized the moratorium, arguing it won't lower utility bills and will deter data companies from investing in Upstate New York, thus hindering job creation and economic development. He stated that the pause sends the "wrong signal" to companies that have already invested time and money in the region.
Conversely, local advocates like Jane Rudden of the No Kings Albany Coalition support the pause but questioned why the Governor chose an executive order instead of signing the Responsible Data Center Development Act. This legislative bill, which passed the Senate and Assembly, contains more specific requirements and restrictions, and advocates feel the executive order has loopholes and doesn't go far enough. Assembly Speaker Carl Heastie confirmed that lawmakers would continue negotiating the bill, and Governor Hochul is open to continued discussions rather than vetoing it.