On Long Island, Governor Hochul Highlights First Statewide Moratorium on New Hyperscale Data Centers as Support Continues to Grow

Governor Kathy Hochul today held a roundtable with state, business and local leaders from Long Island to highlight her Executive Order that creates the nation’s first moratorium on new hyperscale data centers, establishing the strongest standards for data center development and creating a blueprint to support localities. The Governor is temporarily pausing State environmental permits for up to one year in order to build a nation-leading regulatory framework that protects ratepayers, the environment, the energy grid and communities across the state.

“As I visit communities around the state and hear community leaders, business owners and elected officials, I am reminded of the responsibility to ensure that New Yorkers aren't burdened with rising utility costs because of these massive data centers that they didn’t ask for,” Governor Hochul said. “The moratorium I signed is ensuring we develop a framework that meets the needs of New Yorkers — full stop. We are the first to enact this bold vision and we will be the first to get this right.”

Participants of today’s roundtable included:

• NYS Senator Monica Martinez, Chair, Committee on Local Government (D-NY-4)
• NYS Assemblymember Kwani B. O’Pharrow (D-NY-11)
• Mayor Steven Weinberg, Village of Thomaston
• Town Supervisor Rich Schaffer, Babylon
• Bob Deluca, President, Group for the East End
• Dan Lloyd, Founder & President, Minority Millennials
• Kevin McDonald, Senior Policy Advisor, The Nature Conservancy
• Rosemary Menendez, Volunteer, AARP
• Brendan Warner, Chair, Long Island Water Conference
• Bill Zalakar, Executive Director Long Island Farm Bureau

Empire State Development President, CEO and Commissioner Hope Knight said, “Governor Hochul is ensuring that New York remains a leader in innovation while setting clear expectations for large-scale data center projects. Through the Community Investment Framework, ESD will help local leaders secure strong community benefits, protect taxpayers and advance investments in infrastructure, workforce development, child care and other priorities that improve residents’ quality of life.”

New York State is experiencing unprecedented growth in demand for data center development driven by artificial intelligence and other computing operations. The increase in demand has led to proposals across the state for the construction and operation of data centers that could require massive amounts of energy and water to run and cool thousands of computer servers.

Earlier this year, the Governor directed the Department of Public Service (DPS) to begin the Energize NY proceeding, which will require data centers to either pay more for their energy or supply their own, allowing the state to keep energy more affordable for New Yorkers. As part of that proceeding, the Governor is now also directing DPS to develop a Generic Environmental Impact Statement (GEIS) for data centers to ensure new data centers coming online are being held to consistent standards. During the development of this GEIS, which will take up to a year, a moratorium will be in place and the Department of Environmental Conservation (DEC) will not issue any discretionary permits not already deemed complete. The state will use the GEIS to assess the potential environmental impacts of the construction and operation of data centers in the state, including their effect on energy demand, water use and quality, and air quality. Once the State finalizes these standards, the moratorium will be lifted, allowing new data center projects to proceed as long as they follow state, zoning code and other local approvals.

The Governor also directed Empire State Development (ESD) to issue a Community Investment Framework (CIF) within 60 days, which will provide clear guidance to local entities to help them negotiate community benefits as part of any large-scale data center deal, including local infrastructure improvements, child care investments, and direct financial support for their community. The CIF will also establish frameworks that provide organized labor a seat at the table and prioritize prevailing wage standards and project labor agreements for data center construction, local hiring, apprenticeships and workforce development to maximize economic benefits. This framework will additionally include a formula to help communities assess where to begin investment negotiations. An outline of the CIF is currently available on ESD’s website, and the public is encouraged to submit feedback.

Additionally, the Governor is directing DPS to consider creating a New York Grid Acceleration Fund to require data centers to invest in the state’s aging grid infrastructure and energy needs so all New Yorkers benefit from responsible development. The fund could support the procurement of new clean energy supply and establishment of an insurance pool to which developers may need to contribute to protect against speculative large loads that create uncertainty and increase costs. DPS will also consider approaches to require data centers to fund new clean electric generation dedicated to their operations, including but not limited to customer-sited distributed energy resources and battery storage.

Finally, Governor Hochul is pursuing legislation to repeal sales tax exemptions for massive data centers across the state.

Since taking office, Governor Hochul has ensured New York is leading the nation in AI innovation and development. As part of her FY25 Budget, the Governor launched Empire AI, a nation-leading initiative to advance AI research for public good. This year, she launched the FutureWorks Commission to advise on policy and private sector actions to protect the security of workers while harnessing the economic benefits of AI for all New Yorkers. This blue ribbon Commission is composed of nation-leading experts, workers’ advocates, and business leaders, and will be charged with advising Governor Hochul on how to navigate the AI transition, so that the benefits of AI can be shared among New York’s families, workers, and small businesses — not just large corporations.

Governor Hochul also implemented nation-leading safeguards to keep New Yorkers safe online and to ensure safe and responsible AI use in New York State. Initiatives include:

• The SAFE for Kids Act and Child Data Protection Act that restrict addictive feeds for kids and prevent online operators from collecting and monetizing children’s data without informed consent.
• AI Companion legislation which set first-in-the-nation safeguards, diverting user conversations about self-harm to mental health resources and interrupting unhealthy addictive behaviors. The Governor also outlawed AI-Generated Child Sexual Abuse Material.
• The recently signed Warning Labels bill that will require social media companies post warnings about the platform's potential impact on mental health.
• AI Deceptive Practices Act, which enhances protections against unauthorized use of likeness/voice and the unauthorized dissemination of intimate images.

This year, the Governor’s Safe by Design Act was enacted in the FY27 State Budget. Safe by Design ensures that parental controls for kids are set at the highest protections on common social and gaming platforms, which means that non-connections above the age of 18 cannot privately communicate with kids, view their full profile, or tag them in content. Location settings will also be turned off by default, and children under 13 must receive parental approval for new connections. It also disables certain AI chatbot features on online platforms for kids and parents must be able to set limits on children’s financial transactions on online gaming platforms and view their child’s transaction history. While many of these platforms have increased their security features for kids, in New York it is now the law, and cannot be relaxed by these platforms over time.

Additionally, Governor Hochul is creating a first-of-its kind Office of Digital Innovation, Governance, Integrity, and Trust (DIGIT). DIGIT will serve as a central, authoritative body for digital safety and technological governance, devising new approaches and ensuring consistent enforcement to keep New Yorkers safe online while protecting New York’s position as a state that values and invests in cutting-edge innovation. The DIGIT Office will first focus on regulating large frontier AI developers as outlined in the RAISE Act, enabling greater transparency into their safety measures and establishing a reporting mechanism for developers to report critical safety incidents. The effective date of the law is January 1, 2027.

State Senator Monica Martinez said, “Artificial intelligence and data centers run on the same limited natural resources we all depend on for daily life. Allowing these energy- and water-intensive facilities to remain unchecked drives up costs for residents and threatens quality of life across New York, especially here on Long Island. I thank Governor Hochul for instituting this one-year pause on new data center development while New York determines how best to prepare for and integrate these technologies to meet the needs of our state.”

Assemblymember Kwani B. O’Pharrow said, “Artificial intelligence and emerging technologies present tremendous opportunities for New York, but innovation must never come at the expense of our communities, our environment, or working families. I support Governor Hochul’s decision to establish a temporary moratorium while New York develops a responsible, transparent and nation leading regulatory framework.”

Assemblymember Steve Stern said, "As the Representative for the 10th Assembly District, I thank Governor Hochul for joining us in Suffolk County today, and for her proactive leadership in addressing the critical challenges data centers pose for our communities and for taking the steps necessary to ensure that before any centers are built, there is a full understanding of their implications. By bringing key stakeholders and professionals together, we can address the impact of these centers on the grid, our sole-source aquifer, and workforce, and address future costs to ratepayers and the infrastructure demands posed by data centers. Thank you to Governor Hochul for her recognizing the importance of local control and Long Island concerns while addressing the needs of all New Yorkers.”

Town of Babylon Supervisor Rich Schaffer said, “I want to thank Governor Hochul for taking a thoughtful, balanced approach to the future of large-scale data centers in New York. By pausing new projects while the State conducts a comprehensive review, the Governor is ensuring that we get this right before decisions are made that could have lasting impacts on our communities, our electric grid, and our environment. I also appreciate Governor Hochul bringing elected officials, stakeholders, and community leaders to the table. Long Island has a unique perspective and this collaborative process will help develop a framework that supports economic opportunity while protecting our residents, natural resources, and infrastructure for generations to come.”

Town of Brookhaven Councilmember Jonathan Kornreich said, “I commend Governor Hochul for taking a serious and responsible approach to hyperscale data centers. Her Executive Order wisely recognizes that these facilities raise major questions about energy demand, water use, water quality, air quality, ratepayer protection, and community impacts. I especially appreciate that the State is looking at whether data centers should pay more for their energy or supply their own, and that the Governor is considering a Grid Acceleration Fund so massive private users help invest in the grid instead of leaving ordinary New Yorkers to absorb those costs. In the Town of Brookhaven, we have been asking many of these same questions through our own recently passed moratorium. On Long Island, where we rely on a sole-source aquifer and a constrained regional electric grid, we need to establish clear rules before projects of this scale move forward. We were also concerned that a Brookhaven-only moratorium could simply push development pressure into neighboring towns, even though the aquifer and the electric grid are regional resources shared by all of us. I thank Governor Hochul for being a strong partner in government and for recognizing that local communities should not have to face these issues alone. Her Executive Order gives towns like Brookhaven the time and support needed to plan responsibly, while also helping protect Long Island as a region.”

AARP New York State Director Beth Finkel said, “At a time when too many New Yorkers are struggling to afford basic necessities, they should not be forced to pay for the enormous energy demands of massive data centers. Nearly half of older New Yorkers have cut back on basic expenses such as groceries, personal care, and transportation because of high utility bills, while 17 percent have reduced spending on medical expenses, including prescription medications. AARP New York welcomes Governor Hochul's Executive Order 62 for putting consumer protection and affordability at the center of New York's energy policy.”

Nassau County Village Officials Association President Mayor Steven Weinberg said, “The Data Center Moratorium critically allows Villages & local municipalities to plan for electric and water infrastructure improvements that increased usage requires, address impacts on our resident's utility rates and any Data Center application will be pursuant to a Villages zoning and permitting process allowing for community benefits and improvements that a Village and their residents need. We recognize and appreciate Governor Hochul's leadership providing the time to understand and plan for addressing the short and long-term issues that data centers present for government to utilize.”

The Nature Conservancy in New York Senior Policy Advisor Kevin McDonald said, “Thank you Governor Hochul for inviting us to discuss the recently announced executive action on data centers. Today’s roundtable was an opportunity to hear from Long Islanders about the potential impacts of data centers, and how impacts can be addressed as New York continues to undertake economic development. The Nature Conservancy in New York looks forward to the development of a robust regulatory framework that includes requirements to mitigate impacts and directs investments into conservation projects such as reforestation, natural resources restoration and wildlife habitat protection. With these kinds of investments, we can ensure the land, air and water that future generations of New Yorkers depend on will be conserved.”

Group for the East End President Bob DeLuca said, “We applaud the Governor’s leadership in recognizing the critical importance of listening to local communities, and fostering informed planning and decision-making when it comes to the future of data center siting and construction here on Long Island. If we are to preserve our Long Island way of life, and responsibly manage our fragile water supply and overburdened infrastructure, then we must take the necessary time to understand the implications of these new industrial uses, and develop clear guidance to protect the public, and inform our local government’s review of this rising tide of data center proposals.”

Long Island Farm Bureau Executive Director Bill Zalakar, “Our Farm Bureau community is very supportive of the Governor’s moratorium on Data Centers. Our land, water, electric and natural resources are so critical to all of us, that it is important that we take a pause to fully understand the effects that this will have on our environment and economy. These resources are so critical in agricultural production that we need to make sure the future of our food supply is not jeopardized.”

Minority Millennials President Dan Lloyd said, “This pause is wise leadership, not opposition to technology. New York is leading the nation by setting a clear standard: if AI data centers draw power from our communities, they must invest both in our people through education, apprenticeships, and career pathways and in the infrastructure that protects us, including energy innovation, efficiency, storage, and closed-loop cooling. This is good government: embracing innovation while upgrading our grid, water supply and quality of life for generations to come.