New York Governor Hochul highlights data center moratorium while fielding $2 billion AI facility proposal in Town of Tonawanda.

Governor Kathy Hochul visited Western New York to highlight her executive order creating a moratorium on the construction of new data centers in New York state. At a roundtable meeting with community members and elected leaders at Tonawanda Town Hall, Hochul outlined her administration's approach to managing rapid data center expansion.

The executive order pauses permits for new data centers for up to a year, allowing the state time to develop a regulatory framework designed to protect ratepayers, the environment, the energy grid, and local communities. The timing is significant given the $2 billion AI data center proposal that has stalled in the Town of Tonawanda, where developers sought to establish a facility at the former Tonawanda Coke Plant along River Road. Residents have voiced concerns about the facility's substantial energy consumption and its potential impact on local electricity rates.

Hochul emphasized that while she supports artificial intelligence development, any expansion must be carefully managed. "Right now I have 30 projects before us in the state of New York, and if I powered every one of them, you would not be able to turn on the lights tomorrow," she said. "That's how serious this is, so we have to be thoughtful about this, really thoughtful, and that's what I'm excited about doing over this next year, working with state agencies, elected partners and others."

Melisa Dettbarn, a teacher in the Kenmore-Town of Tonawanda UFSD, voiced support for balancing innovation with community needs. "We have a long history of embracing new technology in New York state but we also have to think about the communities and the idea of not in my backyard too, we have to meet the moment," she said.

Beyond the moratorium, Hochul announced plans to pursue legislation repealing tax exemptions for massive data centers across the state.