Hochul: 'We've got some time' until decision on data center moratorium

Governor Kathy Hochul is currently reviewing a bill passed by the New York State Legislature that proposes a one-year moratorium on new data center construction and includes longer-term regulations. During an event in Buffalo, Governor Hochul conveyed understanding for residents' concerns regarding the potential impact of data centers on the electrical grid and rising utility bills, stating she cannot allow data centers to burden ratepayers. However, she indicated she needs time to evaluate the bill, which is one of over 850 legislative measures on her desk, before the December deadline for signing or vetoing.

Assemblymember Jon Rivera, a proponent of the moratorium, emphasizes the need for regulatory bodies to catch up with the rapid growth of the data center industry. He argues that the pause is crucial for New Yorkers to gather information and make informed decisions about projects that could consume hundreds of megawatts, ensuring clarity on their effects on energy reliability, affordability, and the environment. Hochul also highlighted the important role of local governments in approving data center developments, stressing the need for communities to secure the best possible deals.

The bill's passage comes amidst growing local concerns, particularly in Western New York, where at least three large-scale data center projects are in various development stages, including locations in Niagara Falls, Tonawanda, and Genesee County. For example, developers of the Riverview Innovation & Technology Campus in Tonawanda temporarily withdrew their 300-megawatt data center proposal after significant public protest, while Niagara Falls Redevelopment secured approval for a 100-acre data center in early June. Residents near facilities like the STAMP site in Genesee County have voiced issues, such as infrasound noise, underscoring the diverse impacts of these developments.