Hochul goes after tax incentives for data centers
New York Gov. Kathy Hochul plans to introduce legislation to eliminate state and local tax incentives for large-scale data centers. She has already imposed a 12-month statewide moratorium on permits for AI-driven projects, citing growing opposition and the profitability of these companies. This stance has drawn criticism from President Donald Trump.
New York Gov. Kathy Hochul announced plans to pursue legislation next year aimed at eliminating state and local tax incentives for large-scale data centers across the state. The governor confirmed that this initiative would specifically target incentives negotiated with local economic development agencies, arguing that these are highly profitable companies that do not require such tax breaks.
This legislative push follows a significant move last week when Governor Hochul imposed a first-of-its-kind statewide moratorium, lasting up to 12 months, on state permits for AI-driven data center projects. The action reflects a broader trend of increasing community opposition to data center developments across the United States.
The governor's stance has drawn a strong rebuke from former President Donald Trump, who publicly criticized her decision to pause state permits. Trump has, in contrast, advocated for the expansion of infrastructure necessary to support burgeoning AI companies.