Labor, business groups warn NY data center ban endangers jobs, economy
New York Governor Kathy Hochul has enacted a year-long statewide moratorium on new data centers consuming 50 megawatts or more. The ban aims to assess environmental, energy grid, and community impacts. The decision has drawn mixed reactions, with business and labor groups warning of economic and job losses, while environmental advocates and some lawmakers support it as a crucial first step.
New York Governor Kathy Hochul signed an executive order on Tuesday, July 14, implementing a year-long moratorium on new environmental permits for data centers consuming 50 megawatts or more. The ban aims to allow the state to assess the impact of these facilities on ratepayers, the environment, energy grid, and local communities. During this period, the governor's office plans to develop an environmental impact statement, create community guidance, invest in the state's grid, and consider legislation to repeal certain data center tax exemptions.
The statewide moratorium has elicited strong reactions. Upstate United, an advocacy group for New York businesses, sent a letter to Governor Hochul opposing the ban, with Executive Director Justin Wilcox arguing it would jeopardize potential investment and skilled jobs by stripping local control and prolonging uncertainty for companies. Mark McManus, General President of the United Association of Union Plumbers and Pipefitters, also called the ban "shortsighted" for potentially killing union jobs.
Conversely, U.S. Senator Kirsten Gillibrand publicly supported Hochul, emphasizing the need for New Yorkers to have a say in how data centers impact their lives, ensuring energy bills do not spike, and water and air remain clean. New York State Senator Liz Krueger, D-Manhattan, expressed pleasure that the governor was addressing public concerns, calling the ban a "good first step" toward rigorous protections. Environmental advocacy group Food & Water Watch also welcomed the moratorium but called for further action, noting that the current order excludes some large proposals in areas like Orangeburg, Rockland County, due to how megawatts are assessed.