Governor imposes one-year moratorium on hyperscale data centers

Orange County Partnership President & CEO, Conor Eckert addressing the audience at Governor Hochul's press conference in Brooklyn.

By Hank Gross, Mid-Hudson News

NEW YORK – Saying giant data centers consume extremely large amounts of energy, thus taxing the system, Governor Kathy Hochul Tuesday signed an executive order placing a moratorium on new facilities across the state.

Her temporary pause on state environmental permits for up to one year is aimed at building what she called a nation-leading regulatory framework that protects ratepayers, the environment, the energy grid and communities across the state.

These hyperscale data centers consume enormous amounts of power, truly threatening to outpace our grid capacity, and they drive up costs for local ratepayers. And I refuse to let those costs be passed along to New Yorkers, who already pay too much for their utility bills,” she said.

Orange County Partnership President & CEO, Conor Eckert joined the governor in New York City as she made the announcement. He said it will benefit commerce, job creation and the environment and by responsibly addressing the data center issue.

“Projects are getting more and more power intensive, and those electrons are critical, and in Orange County, we see that as an opportunity to maximize job creation, but to make sure we are developing those sites in our communities responsibly, while maximizing opportunities for long-term investments,” he said. “So the framework announced today, I think, creates an opportunity to bring the right voices to the table, to wrap our arms around what will be a critical sector for New York, and frankly the country.”

The governor said she is also pursuing legislation to repeal sales tax exemptions for massive data centers across the state.