New York Gov. Kathy Hochul’s year-long ban on large data centers statewide is receiving mixed reactions from advocacy groups and state lawmakers.
Through a newly signed executive order on Tuesday, July 14, state environmental permits for data centers that can use 50 or more megawatts of power will be temporarily paused for up to a year to better understand how New York ratepayers as well as the environment, energy grid and communities will be impacted statewide, according to the governor’s office.
Several other measures will also take place over the course of at least the next year, Hochul’s office says, including the development of an environmental impact statement, the creation of guidance for communities and a fund to invest in the state’s grid as well as the consideration of state legislation that would repeal certain tax exemptions for large data centers.
Here’s how others across New York are responding.
Union members and business advocacy group oppose data center ban in NY
Upstate United, an advocacy group representing business and trade organizations across New York, sent a letter to Hochul on Monday, July 13, opposing “any moratorium on the construction or development of data centers in New York State” over concerns about how it would impact the state’s economic future.
On Tuesday, Executive Director Justin Wilcox doubled down, saying a statewide ban “strips away local control and a community’s ability to decide on projects that could be pivotal to their economic growth and job creation.”
“While we understand there are some valid concerns around data center development in New York State, many stemming from the state’s self-inflicted power generation shortage, executive action to enforce a moratorium on the development or construction for up to one year sends mixed signals,” Wilcox said.
“This will not only prolong uncertainty for companies looking to New York, but ultimately jeopardize potential investment, economic development and skilled jobs,” Wilcox added.
And while part of Hochul’s moratorium includes crafting frameworks that include organized labor groups to ensure wage standards and project labor agreements are part of the state’s data center construction, some union members across the state are questioning how it would actually affect them.
United Association of Union Plumbers and Pipefitters General President Mark McManus called the ban “shortsighted” and says it “kills good-paying union jobs.”
“Rather than implementing guardrails to build the future of American ingenuity, Governor Hochul is taking her ball and going home,” McManus added. “We urge the Governor to work with all parties, including the hardworking New Yorkers whose jobs are at stake, to implement common sense guardrails.”
Sen. Gillibrand, environmental groups applaud New York data center ban
U.S. Sen. Kirsten Gillibrand expressed public support for Hochul on Tuesday, praising her for “taking decisive action on data center construction.”
“Today’s executive order sends a clear message New Yorkers deserve a say in how this technology impacts their lives and communities,” Gillibrand said in a written statement.
“This one-year moratorium is fundamentally about trust,” she continued. “Right now, New Yorkers aren’t convinced these massive facilities benefit them. Before we move forward, our communities need ironclad guarantees that their energy bills won’t spike, their water will be protected, and their air will remain clean.”
At the state level, Sen. Liz Krueger, D-Manhattan, said she’s “very pleased” that Hochul is “listening to New Yorkers’ concerns and following the Legislature’s lead” by enacting the ban.
“It’s a good first step,” Krueger added. “Now it is critical to ensure real and rigorous protections are put in place to protect energy affordability and the health of our air, water, land, and people.”
Hochul’s announcement comes just over a month after the state Legislature passed legislation that included a one-year ban on new data centers during their last official session day of the year. Representatives from Hochul’s office said on Monday, July 13 that this piece of legislation is still on the table and the reason for this executive order is to take immediate action while the state continues to go through the nuances of the bill.
Environmental advocacy group Food & Water Watch also approved of Hochul’s data center moratorium on Tuesday, but echoed Krueger’s sentiment that more needs to be done.“This one-year moratorium is a huge step forward for New York communities fighting against an onslaught of massive data center proposals,” the organization’s New York State Director Laura Shindell said in a statement.
“This must be only the first step Governor Hochul takes, though,” Shindell added. “Orangeburg in Rockland County is facing four distinct data center proposals that collectively would reach more than 120 megawatts in scale — but when assessed separately they are only considered 30 megawatts each and therefore excluded from Hochul’s current moratorium.”
“While we celebrate New York becoming the first state in the country to enact a data center moratorium, we’ll continue to organize at the grassroots level to build the movement required to fully protect all New Yorkers from data centers’ impacts on people and the environment,” the director continued.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Labor, business groups warn NY data center ban endangers jobs, economy
Reporting by Emily Barnes, New York State Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
By Emily Barnes, New York State Team | USA TODAY Network
