politics
Data center developers anxious after Hochul's construction pause
If a state as large as New York can put a pause on permitting, developers have to assume it could happen anywhere, said one AI lobbyist.
TL;DR
- New York Governor Kathy Hochul signed an executive order pausing data center construction, the first state-level moratorium of its kind.
- This action follows similar moratoriums passed by numerous municipalities across the U.S. and reflects growing public concern about AI.
- The moratorium could serve as a bridge between moderate and progressive Democrats, with some federal lawmakers advocating for similar restrictions.
- Industry supporters and detractors believe this moratorium is unlikely to be the last, with data center developers expressing significant concern about the precedent it sets.
- Some Democrats, like Rep. Josh Gottheimer, oppose a moratorium, fearing it would cede innovation leadership to China.
- Republicans are also hesitant to impose broad pauses, preferring voluntary "ratepayer protection pledges" while still aiming to protect consumers from rising energy costs.
- Legislation proposing data center moratoriums has been introduced in 15 states, with only Maine and New York seeing bills reach the governor's desk, though neither was signed.
- While some states like Arizona have suspended tax incentives and Virginia has implemented new energy taxes, outright moratoriums have been resisted by leaders in states like California and Virginia.
- Municipalities in Florida have passed numerous moratoriums, and Texas Governor Greg Abbott has proposed legislative proposals to regulate data centers.
- Senate Minority Leader Chuck Schumer stated that data centers must "pay their fair share and promote healthy communities" but did not explicitly call for a pause on construction.