Hochul highlights data center moratorium amid proposal to bring $2B facility to Town of Tonawanda
Governor Kathy Hochul has highlighted her executive order enacting a statewide moratorium on new data center construction in New York. This order comes as a $2 billion data center proposal in the Town of Tonawanda faces local opposition due to concerns about energy usage and rates. The moratorium is intended to provide the state time to develop a framework protecting ratepayers, the environment, and the energy grid.
Governor Kathy Hochul visited Western New York to discuss her executive order imposing a one-year moratorium on new data center construction permits across New York State. The order aims to provide the state with time to develop a framework that will protect ratepayers, the environment, the energy grid, and communities from the impacts of data center development.
This statewide pause directly affects a proposed $2 billion data center in the Town of Tonawanda, planned for the former Tonawanda Coke plant along River Road, which is currently in limbo. Local residents have expressed strong opposition, primarily raising concerns about the immense energy consumption of the facility and its potential impact on energy rates for the community.
During a roundtable discussion at Tonawanda Town Hall with community members and elected leaders, Governor Hochul reiterated that the moratorium allows the state to further investigate the comprehensive impacts of data centers, from grid strain to environmental effects and job creation. She emphasized the need for thoughtful development, noting that over 30 projects are currently before the state and powering them all without proper planning could severely strain the energy supply.
Hochul stated her support for AI technology but insisted that its scaling through data centers must be done correctly to understand community impacts, acknowledging a "not in my backyard" sentiment while stressing the need to meet the moment with careful consideration.