‘Not letting these big corporations call the shots,’ Hochul says of temporary AI data center construction ban

New York Governor Kathy Hochul announced a one-year moratorium on new hyperscale data centers requiring at least 50 megawatts of electricity, aiming to study their impact on energy demand, water, and air quality. The temporary ban, effective Tuesday, applies to new facilities and exempts projects with completed permit applications. Hochul stated, "I’m not letting these big corporations call the shots in our state," emphasizing the need for environmental standards and local government authority in hosting these facilities. The state is considering requiring data centers to pay more for electricity, fund grid upgrades, and forgo sales-tax exemptions. David Greenfield of Met Council, a member of Hochul’s AI FutureWorks Commission, supported the pause, noting that existing regulations were not designed for the current scale and frequency of AI data center proposals. He added, "The rules that they’ve been using to build these data centers were not intended for these kinds of data centers."