Data Center Moratorium Is More Smoke Than Substance

New York state has a habit of wanting to be first, and this week it became the first state in the country to impose a statewide moratorium on new large-scale data centers.

Gov. Kathy Hochul’s executive order temporarily pauses state permitting for major data center projects while state agencies develop new standards to address their impact.

At least 51 large load projects, including proposed data centers, have been identified across New York as of this May, although many remain in the early planning stages. Like many large infrastructure proposals, not every project is expected to move forward, and relatively few have advanced to actual construction.

Nationwide, many proposed data centers face significant hurdles before breaking ground, including financing, permitting, utility infrastructure and local review. Some communities have embraced the projects for the jobs, tax revenue and economic development they can bring, while others have raised legitimate concerns about energy demand, land use and environmental impacts.

Those concerns deserve thoughtful consideration, but a blanket statewide moratorium is not the answer. Every community is different. What makes sense for one community may not make sense for another. Decisions about whether a community wants to host a data center should be made with local input free from Albany’s domineering attitude.

Local governments are best positioned to weigh the potential economic benefits alongside concerns about infrastructure, environmental impacts and quality of life. The state’s role should be to establish clear rules, protect ratepayers and ensure the electric grid remains reliable. Hard stop.

Whether data centers are built or not, New Yorkers are struggling with some of the highest electricity costs in the country. Demand for electricity continues to grow as state leaders push widespread electrification, even as reliable sources of power, such as natural gas, are being phased out before long-term solutions like advanced nuclear energy are ready to come online.

Given the years-long timeline required to plan, permit and construct a data center, the governor’s one-year moratorium appears more symbolic than substantive. It delays projects without addressing the larger challenges facing New York’s energy future. Instead, Albany should be focused on expanding affordable, reliable energy production, strengthening our electric grid and lowering utility costs for families and businesses. Those priorities would benefit every New Yorker, regardless of where they stand on any individual development project.

If you have any questions or comments on this or any other state issue, or if you would like to be added to my mailing list or receive my newsletter, please contact my office. My office can be reached by mail at 19 Canalview Mall, Fulton, NY 13069 and by email at [email protected]. You may also find me, Assemblyman Will Barclay, on Facebook or X at @WillABarclay.