Last week, Governor Kathy Hochul today signed an Executive Order to create the nation’s first moratorium on new hyperscale data centers.
Artificial intelligence is transforming the way we live and work. From improving medical research to making our electric grid more efficient, the technologies powered by data centers will play an increasingly important role in New York’s future.
But with that opportunity comes a responsibility.
As demand for hyperscale data centers accelerates, New York faces a critical question: How do we embrace this new technology without sacrificing our clean energy goals, burdening ratepayers, or harming the communities where these facilities are built?
Governor Hochul’s Executive Order is an important step toward answering that question. It directs state agencies to develop one of the nation’s most comprehensive regulatory frameworks for large-scale data centers, examining everything from electricity demand and transmission needs, to water use, air quality, noise, and impacts on disadvantaged communities.
“Artificial intelligence and the technologies powered by data centers are here to stay, but their growth cannot come at the expense of our communities or our clean energy future,” said NYLCV President Julie Tighe at the Governor’s announcement. “If we’re going to build hyperscale data centers, we need to hyperscale our investments in renewable energy, transmission, and storage.”
Communities living near these facilities deserve confidence that their health, air quality, and water resources will not be compromised by poorly planned development.
Rather than reacting project by project, New York now has an opportunity to establish clear expectations before a wave of new development arrives. The state can create standards that ensure data centers contribute to – rather than compete with – our clean energy transition.
This approach builds on legislation advanced this year by Senator Kristen Gonzalez and Assemblymember Didi Barrett, who recognized early that New York needed proactive policies to keep pace with the explosive growth of artificial intelligence infrastructure.
New York has repeatedly demonstrated that economic growth and environmental leadership can go hand in hand. The choices made over the next year will shape how this rapidly growing industry develops for decades to come – and the nation is watching.
By creating strong, science-based rules now, New York can welcome innovation while protecting ratepayers, safeguarding natural resources, and ensuring every community shares in the benefits of a cleaner, more resilient energy future.