Gov. Kathy Hochul says New York "has to lead" on 1-year, large-scale data center ban
New York Governor Kathy Hochul signed an executive order implementing a one-year ban on large-scale data center development across the state. This decision reverses her previous stance and aims to allow state agencies to study the impacts on electricity grids and water consumption. The goal is to establish proper rules and conditions for data center operations and ensure benefits for New York communities.
New York Governor Kathy Hochul announced a significant policy shift by signing an executive order imposing a one-year ban on large-scale data center developments across the state. This move comes after she initially stated that such decisions were best left to local municipalities.
Governor Hochul explained her change in position, citing concerns that local communities lack the negotiating power to secure adequate benefits from data center projects or to demand that these companies manage their own power and water needs. She highlighted the strain on the state's electricity grid and emphasized the need to study water consumption during the moratorium period. The governor aims to establish clear conditions and rules for data center companies, ensuring they contribute to the grid and benefit New Yorkers, rather than solely focusing on construction jobs.
Addressing concerns from unions and businesses about potential job losses or a negative investment signal, Governor Hochul assured that the ban is a temporary measure designed to allow the state to 'get it right.' She contrasted her approach with a White House pledge for AI data centers to cover infrastructure costs, stating her preference for direct state-level enforcement to protect consumers and the grid.