New York Business Group Opposes One-Year Statewide Data Center Moratorium

The Partnership for the City of New York said a one-year moratorium on new hyperscale data centers requiring at least 50 megawatts of power accomplishes nothing and signals higher risk to private investors. The group represents the city’s 300 largest firms.

Its CEO stated that other states continue to work with communities on data-center projects without a moratorium and that New York risks falling behind in the AI sector.

signed an executive order last week that imposes the one-year pause. She said the delay will give the state time to manage the impact on the electric grid and to negotiate with technology companies. Thirty pending applications for data centers are currently before state agencies. Hochul noted that local governments lack the capacity to handle negotiations on an individual basis.

Construction trades unions have also opposed the moratorium. A state senator who represents parts of Queens, Manhattan, and Brooklyn said data centers should not pollute water, strain the grid, or raise utility bills. A Republican candidate for governor said the order places political considerations ahead of economic opportunity.

Hochul’s office stated that the decision is not connected to her re-election campaign.