Gov. Kathy Hochul’s first-in-the-nation statewide moratorium on data centers is being heralded as necessary government action — and blasted as a job-killing measure that will drive critical investment out of state.
Hochul signed an executive order Tuesday calling for the pause on large data center developments for up to one year. The move is meant to allow the state to come up with stronger regulations to protect consumers and the environment, the governor said.
“The bottom line is progress shouldn't arrive with a higher utility bill, deleted water supply, or noise pollution,” Hochul said. “So we have no choice but to address these challenges created by these massive facilities.”
The moratorium will apply to what are known as hyperscale data center projects that require more than 50 megawatts of electricity.
One project that would likely be impacted by the moratorium is a controversial 500-megawat data center working its way through approvals at the Science, Technology and Advanced Manufacturing Park or STAMP in Genesee County. A spokesperson for the county’s economic development agency said that legal counsel is reviewing language in the governor’s order and declined further comment.
The company behind that project, Stream Data Centers, did not immediately respond to a request for comment. But the group Tech:NYC, which represents several of the biggest names in tech including Meta and Google, released a statement warning the moratorium would hurt the state’s economy.
“Twelve months is far too long, and will have the negative impact of encouraging companies to move their investments elsewhere instead of working with communities and state agencies on plans to keep energy affordable and reliable,” said Julie Samuels, president and CEO of Tech:NYC.
The group said it appreciated the governor’s approach to addressing such questions as energy demand and community impacts of data centers.
“Over the following months, we look forward to continuing to work with the governor and policymakers to address concerns about data centers,” Samuels continued, “while ensuring the state remains a leader in the industries that will drive the next generation of economic growth.”
While Hochul cited protections for labor like wage standards for projects and ensuring projects hire local workers, unions like the United Association of Union Plumbers and Pipefitters said the pause “kills good-paying union jobs.”
Hochul’s order follows a moratorium bill passed by the New York Legislature in the final days of this year’s session. It would place a moratorium on data centers that would use 20 megawatts of electricity.
One of the legislation’s main sponsors, Sen. Kristen Gonzalez, D-Queens, appeared with Hochul as she signed the order in Brooklyn.
“With this executive order, Gov. Hochul is setting the standard that government should improve our lives, not pollute our environment,” Gonzalez said.
Hochul’s office has not ruled the possibility of the governor signing the bill. Assembly Speaker Carl Heastie said negotiations were ongoing.
“I'm looking at the good of it, which is (being) happy that the governor is understanding that we have to really look at data centers,” Heastie said during an appearance in Menands. “But … in my exchanges with her, this is not … meaning that she's looking to veto the bill. She said she's absolutely wants to continue to talk about it.”
Hochul has until the end of the year to sign, veto or request amendments to the bill.
