Hochul says data centers will come to NY when state is ready -- and not a second sooner
Governor Kathy Hochul has enacted a one-year moratorium on hyperscale data centers in New York that consume 50 or more megawatts of power, despite potential concerns about businesses leaving the state. This comes as the Town of Tonawanda Planning Board attempted to provide an update on a proposed AI data center at a former industrial site.
Governor Kathy Hochul recently affirmed her executive order imposing a one-year moratorium on hyperscale data centers in New York that require 50 or more megawatts of power. The Governor's decision, announced following a roundtable discussion in the Red Room of the State Capitol on July 16, 2026, reflects a cautious approach to data center expansion, prioritizing the state's readiness over immediate business enticements. Hochul expressed minimal concern that the policy might encourage businesses to relocate their data center facilities to other states.
Simultaneously, local development plans are also navigating the state's evolving stance on data centers. Mark Rountree, Chairman of the Town of Tonawanda Planning Board, faced multiple interruptions during an attempt to provide an update regarding a proposed AI data center slated for the former Tonawanda Coke site. The article also alludes to existing and proposed data center locations in Western New York, indicating ongoing regional interest and development in the sector.