NY Becomes First State To Impose Data Center Moratorium

This morning, New York Governor Kathy Hochul announced a one-year moratorium to halt construction of new hyperscale data centers in the state, establishing it as the first state in the U.S. to impose this kind of pause.

My own map brockovichdatacenter.co… has received 209 reports from New York State.

Here are some of the governor’s remarks:

“Today, the winds of change have blown in with the force of a hurricane. We're in the midst of one of the most significant economic upheavals in generations. Perhaps ever.

Artificial intelligence is changing the way we work, where we learn, where we communicate, the way we do business. And it sparked a heated debate over the rapid construction of massive energy guzzling infrastructure that is needed to power the industry.

These hyper scale AI data centers consume enormous amounts of power, truly threatening to outpace our grid's capacity, and they drive up costs for local rate payers. And I refuse to let those costs be passed on to New Yorkers, who already paid too much for their energy bills. 

These data centers require millions of gallons of water, draining the local supplies, and when powered by fossil fuels, they drive up our carbon footprint. 

They occupy massive amounts of land, potentially displacing agricultural space and open spaces. 

And if you live near one, they emit vibrations and noise ranging from annoying to loud that sounded so loud as deafening and disrupted the homes and neighborhoods. 

This pause will remain in place for up to one year, while New York establishes the strongest possible framework to protect our communities, create guardrails, to reduce the risk for our energy grid, minimize land disruption, noise pollution, and protect our natural resources, especially our water supply.

New York will require data centers to either produce their own energy or pay a premium to tap into our grid. 

But there's something else that's so important to me. These data centers can only be built, should only be built, in places that want them. So they will never be exempt from local zoning, local approvals. 

We also want to make sure that labor has a seat at the table, so projects can include wage standards and labor agreements, and prioritize local hiring.

The final part of my plan is to ensure that these hyperscale data centers do not receive tax benefits, full stop. New Yorkers work hard. And on my watch, their tax dollars will not be used to benefit these large firms, these centers. 

The threat of job displacement is real. People aren't afraid of technology. They're just afraid of being left behind by it.  AI is changing our world and our workforce at warp speed. For this reason, I've already convened our future works commission, filling it with top experts in industry leaders, academics, labor leaders, and technology experts to study the risks and the awards of AI, but also prepare our workers for the transition, so they're ready to fill the jobs that are required. 

I also believe that the businesses that build technology capable of changing civilization with AI are also capable of working with us. To protect our power, to protect our water supplies, and our communities. I believe it can be done. As your governor, I don't still want New York to be first. I want New York to be first in the right way. And that's why we're going to take the time to get it right. That is my commitment to the people of the great state of New York. Thank you very much.”

We also heard from New York State Senator Kristen Gonzalez, who represents District 59 on the east side of Manhattan, in Western Queens, and in northern Brooklyn. 

She is also the chair of the Internet and Technology Committee, and the Senate sponsor of the Responsible Data Center Development Act, which passed with bipartisan support through both chambers earlier this year. 

Here’s some of what she said:

“Good tech policy is founded on the principle that technology should make our lives easier. not harder. And good government means collaborating, balancing interests, and delivering real wins for New Yorkers.

In the face of uncertainty, New Yorkers are looking to government to be proactive and protect all of us. With increasing uncertainty, it has never been more important for legislators and governors to have a clear plan for the future. 

But hyperscale data centers are quite literally on a scale we have never seen before. And the challenges they pose to her, energy grid, and to our environment require the urgency of this executive order. 

Potential data centers in New York are seeking more than 9,000 megawatts of electricity—about one third of the total energy New York uses yearly. This gold rush for electricity comes after New York experienced a 44% increase in residential rates between 2020 and 2025, above the national rate increase of 32%. 

It is a fact that our energy grid is already too strained. Over the July 4th weekend, we saw how vulnerable our grid was when Mayor Mamdani asked New Yorkers to keep their thermostats at 78 degrees during a heat wave. 

New Yorkers simply cannot afford the energy or the bills that would come with bringing 9,000 more megawatts onto the grid. 

If we look outside of our state lines, we can see where this road leads if we do nothing. In Virginia's Data Center Alley, Bloomberg did a wholesale electricity study, which showed prices have climbed as much as 267% compared to five years ago, in areas near significant data center activity. 

In Henrico County, schools have been asked to dim lights while seeing their power cost rise, an additional 25%. 

Over the same period of 2020 to 2025, only one permanent job was created for every $54 million invested. That's 168 times more than what it costs on average to create one permanent non-data center job. 

And on water usage, estimates show the U.S. used 17 billion gallons of water because of hyperscale data centers in 2023 alone. 

Well, it is clear this is a nationwide issue. In New York, it's a unifying one. Support for a data center moratorium transcends demographics, political ideologies, and geographies.”