Utility costs and data centers put energy policy at center of New York campaigns
New York Gov. Kathy Hochul is defending a temporary pause on state permitting for large data centers while regulators develop standards for their energy demand, water use and other environmental effects. The policy has drawn opposition from Republican challenger Bruce Blakeman and is part of a broader debate over grid costs, utility rates and developer contributions.
Gov. Kathy Hochul’s executive order pauses certain state discretionary permits for data centers capable of using at least 50 megawatts while the Department of Environmental Conservation and Department of Public Service develop new standards. The pause does not apply to local permits or facilities serving qualifying academic or medical purposes, and applications already deemed complete by the DEC receive different treatment.
The Public Service Commission has advanced an environmental review examining large electricity users, grid connection procedures and cost allocation, along with impacts involving water, groundwater, public health, agriculture, noise and community character. Hochul’s administration also wants developers to help fund grid improvements, while Empire State Development recommends that municipalities negotiate voluntary investments of $1 million per megawatt of demand. Republican challenger Bruce Blakeman opposes the moratorium, and the article frames the policy as part of New York’s election-year debate over utility costs and future data center development.