Hochul draws cheers, jeers over statewide data center moratorium
Governor Kathy Hochul signed a first-in-the-nation statewide moratorium on new hyperscale data center developments in New York, sparking both praise and criticism. The executive order, effective for up to one year, aims to establish stronger regulations to address concerns over utility bills, water supply, and noise pollution. The move has drawn opposition from tech industry groups and some unions, who argue it will hinder economic growth and job creation.
New York Governor Kathy Hochul enacted a first-of-its-kind statewide moratorium on new hyperscale data center developments, signing an executive order on Tuesday. The pause, which could last up to one year, is intended to allow the state to develop more robust regulations aimed at protecting consumers and the environment from potential impacts such as higher utility bills, depleted water supplies, and noise pollution.
The executive order has elicited strong reactions, with some hailing it as necessary government action to control the rapid growth of the data center industry, while others condemn it as a job-killing measure that will deter investment. One project likely to be affected is a 500-megawatt data center by Stream Data Centers, currently undergoing approvals at the Science, Technology and Advanced Manufacturing Park (STAMP) in Genesee County.
Tech industry groups, including Tech:NYC, which represents companies like Meta and Google, voiced concerns that a 12-month moratorium is too long and will push investments out of state. Tech:NYC President and CEO Julie Samuels indicated the group's willingness to work with the governor to address concerns while maintaining the state's economic leadership. Unions, like the United Association of Union Plumbers and Pipefitters, also expressed opposition, claiming the pause would eliminate well-paying union jobs.
Governor Hochul's order follows a moratorium bill passed by the New York Legislature, sponsored in part by Sen. Kristen Gonzalez (D-Queens), who appeared with the governor at the signing in Brooklyn. Hochul has not yet decided whether to sign the legislative bill, with Assembly Speaker Carl Heastie confirming ongoing negotiations, noting the governor's willingness to discuss the matter further.