New York First To Blink In Icy Staredown Against Data Centers

New York Democrat Governor Kathy Hochul signed an executive order Tuesday morning putting a ban on the state's construction of any new large data centers.

Arianna HookerJul 14, 20263 min read

Technology

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New York Democrat Governor Kathy Hochul signed an executive order Tuesday morning putting a ban on the state’s construction of any new large data centers.

The order, which will block construction on these centers for up to one year, makes New York the first state to impose a data center moratorium. Hochul claims the pause is to give lawmakers time to create framework to protect the environment, according to CBS New York.

The order will temporarily ban the construction of data centers that use 50 megawatts of power or more. During that time the state is to create regulatory framework for assessing how data center projects affect the environment, according to UPI.

Hochul’s office did not immediately respond to the Daily Caller News Foundation’s request for comment.

“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said via her office’s Tuesday press release announcing the moratorium,

The order comes two years after Hochul announced Empire AI, which she called “a state-of-the-art AI computing center in Upstate New York” in an X post at the time. She said the project would make her state “the national leader in AI research & innovation.”

Hochul’s office referenced Empire AI in its press release, calling it a “a nation-leading initiative to advance AI research for public good.”

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New York is currently experiencing rapid growth in the demand for data centers. The Department of Public Service will create guidelines to ensure new data centers are meeting consistent standards, CBS New York reported.

“New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed, too,” Hochul continued in her statement.

A May Gallup poll showed that more Americans would rather live next to a nuclear power plant than a data center. Data centers have been controversial due to water and air pollution concerns. Energy concerns and noise complaints have been cited issued among those living near data centers.

“This is an important victory for the thousands of New Yorkers who demanded that their government take action to put a pause on hyperscale data centers,” Mitch Jones, managing director for policy and litigation at Food and Water Watch said, according to UPI.

Food and Water Watch is a liberal nonprofit that focuses on building political power to protect food, water, and the climate, according to its website.

Hochul is also directing the Department of Public Service to consider creating a New York Grid Acceleration Fund so that data centers have to invest in the state’s aging grid infrastructure. Hochul is also pursuing legislation to repeal sales tax exemptions for data centers in New York, according to Axios.

Hochul is running for a second full term in November and will face off against Republican nominee Bruce Blakeman. She is heavily favored to win reelection given New York’s strong Democratic lean.

Blakeman opposes a moratorium on data centers and says local governments should be allowed to make deals with tech companies for data centers that promise enough economic benefits, according to NBC.

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