Gov. Hochul tells AI data centers to bring their own power
New York Governor Kathy Hochul announced a pause on new large-scale AI data centers across the state to develop rules protecting the power grid, water resources, and local communities. She stated that future data center developers must provide their own power or pay a premium to use the grid, offer significant community benefits, and not expect tax breaks.
New York Governor Kathy Hochul announced a temporary pause on new large-scale artificial intelligence (AI) data center development across the state. Speaking on Good Day New York, Governor Hochul stated that this halt is necessary for the state to establish comprehensive rules designed to safeguard New York's power grid, preserve crucial water resources, and ensure local communities are protected. This policy follows remarks she made in her State of the State address.
The Governor outlined specific expectations for companies intending to build data centers in New York. She emphasized that developers should either "bring your own power" or be prepared to pay a premium to utilize the state's existing electrical grid. Additionally, Hochul stressed the importance of providing substantial financial benefits to communities, referencing "millions of dollars, hundreds of millions of dollars" in benefits, citing examples from other regions. She also explicitly stated that these companies should not anticipate receiving tax breaks from the state.
Hochul highlighted the significant energy demands of modern data centers, noting that a standard 150-megawatt facility can consume as much power as 50,000 homes. This substantial energy usage is a primary concern driving the state's decision to implement a moratorium on any new data centers exceeding this capacity until the new regulatory framework is firmly in place.