Gov. Kathy Hochul is defending her data center moratorium from criticism being leveled by business groups, some unions and President Donald Trump.
Hochul imposed the one-year pause through an executive order she signed this week. In a social media post on Wednesday, Trump called it a “terrible decision” that will send jobs and tax revenue elsewhere.
“Both the Taxes and the Jobs amount to LIQUID GOLD,” the president wrote. “All of this Income, and other Benefits, will be going to Red States, and some Blue, where Data Centers are sought as Cash Cows, with Lower Taxes and Record Setting Jobs.”
Hochul responded to Trump during a Thursday event at the state Capitol, saying the goal is to ensure that there are rules in place so data center development benefits the surrounding community.
“And if the president thinks handing over taxpayer dollars without conditions and just saying, 'come on in,' and somehow that's considered liquid gold, I just disagree with that assessment,” she said. “We have a different interpretation of what the benefits can be.”
Hochul’s executive order applies to hyperscale data centers, defined as those that are seeking 50 megawatts or more of electricity.
She gathered with elected officials, nonprofit leaders and community members on Thursday to discuss the effects of data center development and her order.
There are at least 30 large data centers in the works across New York state, which collectively could consume as much power as all of New York City, said Assemblymember Didi Barrett, D-Hudson, Columbia County, citing data from the New York Independent System Operator.
“This rapid acceleration demonstrates the need to act quickly,” said Barrett, who leads the Assembly’s Energy Committee, “and I thank Governor Hochul for recognizing that urgency.”
Groups like the Long Island Contractors’ Association said they hope the pause will be brief.
"Gov. Hochul's pause on data center permitting means real work disappears for our members — the crews building the roads, power lines, and infrastructure these facilities need. That means fewer jobs and less economic activity on Long Island,” said Marc Herbst, the association’s executive director.
Other groups said New York should match the approach of other states in handling the data center issue, also citing a pledge Trump secured from leading tech companies to cover energy and other costs for data centers.
“New Yorkers are being told that this moratorium protects them from rising energy costs, but other states have already demonstrated a successful alternative that doesn't halt investment,” said Amy Bos, spokesperson for NetChoice, a trade association representing tech companies.
Hochul said that, in the long run, companies will value the certainty New York’s regulatory framework will provide.
“When they look for the state that has the most clear road ahead, that we remove uncertainty and say this is what our expectations are, but if you meet them and you’ll be able to meet them, you'll be able to move forward, they’ll come back to New York, I have no doubt about it,” Hochul said. “But they’ll come back to New York on our terms. That’s the difference.”
Hochul still has not indicated whether she will sign a bill passed by the Legislature calling for a moratorium and other data center regulations. Barrett said she hopes those discussions will continue.
