How New York's data center framework, post-moratorium, would impact development
New York State's one-year moratorium on data center development above 50MW, enacted by Governor Kathy Hochul, is having a 'chilling effect' on the industry. NYS Senator Kristen Gonzalez is touring 13 communities to discuss data center proposals and is pushing for the Responsible Data Center Development Act to become law. The framework post-moratorium, expected in July 2027, remains a concern for developers.
A recent discussion on WRGB's Power & Politics segment brought together key figures to address the future of data center development in New York State. Guests included Kiran Keshav, Director of Research Computing at Empire AI, NYS Senator Kristen Gonzalez, and David Flynn, who leads Phillips Lytle’s Environmental Law Practice Team.
Central to the conversation was Governor Kathy Hochul's Executive Order, which imposed a one-year moratorium on new data center developments exceeding 50MW. EmpireAI, a significant research computing initiative, has been granted an exemption from this moratorium, allowing it to continue its work and growth since its 2024 inception as EmpireAI Beta.
NYS Senator Kristen Gonzalez (D-Queens) announced a statewide tour to 13 communities impacted by data center proposals, including Albany's Kenwood Commons. Senator Gonzalez is the lead Senate sponsor of the Responsible Data Center Development Act, a bipartisan bill that passed the State legislature this session. She is advocating for Governor Hochul to sign this act into law as part of a larger data center omnibus.
From an industry perspective, attorney David Flynn, whose firm advises clients on data center construction in New York, noted that Governor Hochul's moratorium has created a 'chilling effect' on development. Flynn expressed concerns about the challenges developers will face in complying with the state's potential new framework once the moratorium is slated to lift in July 2027, questioning if the framework will be ready in time.