Power concerns take center stage as Hochul discusses data center moratorium in Henrietta
Governor Kathy Hochul defended her decision to enact a one-year moratorium on new hyperscale data centers in New York, citing concerns over energy capacity and impact on electric ratepayers. A roundtable in Henrietta discussed the state's new approach, which includes developing new standards and requiring data centers to cover infrastructure costs. A proposed Stream Data Centers project in Genesee County is highlighted as an example facing local opposition.
New York Governor Kathy Hochul held a roundtable in Henrietta to defend her July 14 executive order imposing a one-year moratorium on state environmental permitting for new hyperscale data centers. The pause is intended to allow the state to establish new standards for projects, particularly concerning their high electricity and water demands. Hochul emphasized the need to address the potential strain on the power grid and water supplies, stating the goal is "to get it right" for New Yorkers.
At the core of the state's new approach is ensuring data centers contribute to infrastructure costs rather than burdening ratepayers. Hochul has directed the Department of Public Service to initiate the 'Energize NY' proceeding, which will require data centers to either pay a premium for grid power or supply their own energy. The state also plans to develop a Generic Environmental Impact Statement to set consistent standards for energy and water use, and air quality.
Local officials expressed varied perspectives. Greater Rochester Chamber of Commerce President Bob Duffy and Monroe County Executive Adam Bello supported the moratorium, highlighting the need for data centers to benefit the local economy without stressing infrastructure. Henrietta Town Supervisor Stephen Schultz, while generally supportive of data center development, advocated for new zoning rules that ensure projects improve local infrastructure. Genesee County Legislature Chair Chris Yunker viewed the state's pause as thoughtful, citing the county's responsibility to taxpayers. He highlighted a proposed Stream Data Centers project in the Town of Alabama, Genesee County, as one that could meet environmental standards, despite drawing substantial opposition from over 300 residents concerned about environmental impacts and infrastructure demands. Stream Data Centers, backed by Apollo Global Management, has proposed a three-building, 2.2 million-square-foot campus and has committed to paying for associated electrical and infrastructure improvements.