On October 27, 2022, during a visit to the Micron Pavilion at the SRC Arena and Events Center in Syracuse, New York, President Joe Biden was accompanied by Senate Majority Leader Chuck Schumer and Governor Kathy Hochul, who observed a 3D representation of a future Micron factory presented by Micron Technology's CEO Sanjay Mehrotra.
Governor Kathy Hochul has recently signed a groundbreaking executive order that halts the construction of new large-scale data centers in New York State that consume 50 megawatts of power or more for a year. This makes New York the first state in the U.S. to enact such a restriction.
In her announcement made in New York City, Hochul remarked, "We are experiencing one of the most profound economic shifts in recent history, if not ever." She expressed concerns over hyperscale AI data centers, stating, "These facilities use massive amounts of energy that could overwhelm our electrical grid," and emphasized, "I will not allow these rising costs to be passed on to New Yorkers."
This decision resonates with a significant portion of the population and environmental advocates who have voiced concerns about the massive resource consumption by hyperscale data centers, particularly their high demand for electricity and fresh water.
The governor's office noted that electricity costs for New Yorkers have escalated, with a 68 percent increase in the average residential electricity price since 2019. This has led to widespread public disapproval of new data center projects, particularly in towns like Lansing and East Fishkill, where proposed facilities faced strong resistance.
Advocates against data center construction welcomed the governor’s action. Laura Shindell, director of Food & Water Watch, a prominent environmental organization, described the one-year moratorium as a major victory for local communities that are battling numerous large data center proposals. "This initiative is a direct result of intense public demand for our leaders to safeguard our air and water quality while ensuring financial security for New Yorkers," she stated.
Support for the governor’s decision extended beyond environmental circles, garnering backing from both state and congressional allies. Senator Kirsten Gillibrand emphasized the importance of trust, saying, “New Yorkers currently doubt the benefits of these large facilities. It’s critical that we secure firm commitments that energy costs won’t surge, and that our air and water will remain protected before moving ahead.”
State Senator Kristen Gonzalez added, "Technology should be an enhancement to our lives, not a burden that degrades our resources or increases our energy costs. This pause provides our State with the necessary time to develop a plan that balances growth with the needs of all New Yorkers."
However, not everyone is on board with the moratorium. Critics argue that it could undermine New York's competitive edge in a rapidly evolving technological landscape. New York State Assemblyman Scott Gray and several colleagues expressed their concerns in a letter to the governor, claiming that such a ban halts investment, removes decision-making power from local communities, and disregards ongoing efforts within the state administration.
"Siting decisions should be local," argued Gray, asserting that Albany's role is to establish regulations and ensure reliability without dictating local projects. "Local communities should have the autonomy to determine if they want a project."
Pennsylvania Senator John Fetterman also weighed in, suggesting that the moratorium could allow foreign competition to gain an advantage, stating, “China wins” in a post on X.
Some data center developers have alleged that foreign entities are backing the anti-AI movement and pointed out instances of anti-AI propaganda being produced for American audiences.
