Video, Audio, Photos & Rush Transcript: Governor Hochul Launches First Statewide Moratorium on New Hyperscale Data Centers

Earlier today, Governor Kathy Hochul signed an Executive Order to create 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.

VIDEO: The event is available to stream on YouTube here and TV quality video is available here (h.264, mp4).

AUDIO: The Governor's remarks are available in audio form here.

PHOTOS: The Governor’s Flickr page will post photos of the event here.

A rush transcript of the Governor's remarks is available below:

 Thank you very much, very much. Please be seated. I want to recognize my partners in government, starting with Senator Kristen Gonzalez. Senator Gonzalez has been a driving force behind why we're here today. I want to thank Senator Gonzalez for all her support.

Julie Tighe, the League of Conservation Voters. Julie, thank you for your leadership of so many causes that we believe in. Welcoming Conor Eckert from Orange County Partnership to give a local perspective, my incredible cabinet members who've been recognized here today and Council Member Lincoln Restler, and as well as a dear friend of ours — head of my clergy council, Reverend A.R. Bernard.

So, welcome — welcome. It's great to be back here. I just came down from Albany, and then I'm going to head back and back down again, but here I am. And I want to — I'll take a moment here. From this lofty, incredible vantage point, we need to focus on what's extraordinary about New York — the exquisite architecture, unsurpassed economic power, immense creativity, achievable success and endless possibilities.

Just take a look at this. But for those who only know this part of New York, this is one slice of it. This is one slice of it. Head up north the river across the state and you'll find smaller cities and towns and hamlets, beautiful farmlands and abundant fresh water, manufacturing operations large and small, diverse industries employing thousands of people and supporting countless families.

New York is the place where people of all ages, all walks of life, all companies want to be, for New York is the American dream. We've remained the economic center of the world by embracing change but also demanding that change uplift our people. And today, the winds of change have blown in with the force of a hurricane.

We're in the midst of one of the most significant economic upheavals in generations, perhaps ever. Artificial intelligence is changing the way we work, the way we learn, the way we communicate, the way we do business, and it has sparked a heated debate over the rapid construction of massive, energy-guzzling infrastructure that is needed to power the industry.

These hyperscale AI data centers consume enormous amounts of power — truly threatening to outpace our grid's capacity — and they drive up costs for local ratepayers. And I refuse to let those costs be passed on to New Yorkers who already pay too much for their utility bills.

These data centers require millions of gallons of water, straining the local supplies — and when powered by fossil fuels, they drive up our carbon footprint. They occupy massive amounts of land, potentially displacing agricultural space and open spaces. And if you live near one, they emit vibrations and noise ranging from annoying to loud — sound that's so loud it's deafening and disruptive to homes and neighborhoods.

The bottom line is progress shouldn't arrive with a higher utility bill, deleted water supply or noise pollution. So we have no choice but to address these challenges created by these massive facilities. That is why today I'll be signing the nation's first ever statewide moratorium on hyperscale data centers.

This pause will remain in place for up to one year while New York establishes the strongest possible framework to protect our communities, guardrails to reduce the risk to our energy grid, minimize land disruption, noise pollution and protect our natural resources, especially our water supply. And we're doing this with the support of the sponsors of the moratorium bill.

I want to thank Senator Gonzalez who's joined us here today. You'll be hearing from her momentarily — give her another round of applause. Assemblymember Didi Barrett, who could not join us but will be joining me later this week. Your leadership is a large part of why we're here today, so I say thank you.

As I announced in my State of the State address just earlier this year, New York will require data centers to either produce their own energy or pay a premium to tap into our grid. It's the only way to ensure that our residents and businesses have affordable energy that they need, and that our power capacity — [which] is already stretched to its limit, so we have so much more to do.

Now, we've invested so much in other forms of power to meet the current needs of New Yorkers and our businesses. Everything from hydroelectric power, looking hard into offshore wind — despite the headwinds from Donald Trump, the administration keeps shutting it down. Clean nuclear power. We're fighting hard to deliver affordable energy for all New Yorkers against, as I said, constant obstruction from the Trump administration dead set on killing renewable energy.

But our current energy needs and our future energy needs require far more power than we're producing even now, just for ourselves. And that's why I've ordered the formal implementation of this new requirement. This, as I said, that data centers supply their own power or pay a premium to get underway. We also have a lot of work to do from all my agency teams.

We're going to explore having hyperscale data centers pay into a larger fund to support our grid statewide. We need to invest in this, help defray costs, reduce bills for our rate payers. We expect this process, which we already launched, to be completed within the year. Once this policy's in place, the moratorium will be reviewed and lifted.

But there's something else that's so important to me: These data centers can only be built — should only be built in places that want them. So they will never be exempt from local zoning, local approvals. I was a local official for 14 years, a Council Member just like Lincoln. Little smaller town, 14 years. That experience taught me [to] always put the needs of the local residents first — full stop. And that's why I've directed my administration to create what we're calling the Community Investment Framework for those localities that want to host data centers. I want to make sure that if they're going to come, those localities will reap substantial benefits.

So when the moratorium ends and the construction of these data centers begins in communities where they are welcome, the people in those communities will get substantial benefit. And there's many examples around the country. We've seen parts of our country collect millions, even hundreds of millions of dollars from these centers to go from everything for new roads, water supply, infrastructure, schools, community centers, playgrounds, fire departments, medical centers, even farm preservation.

The bigger the data center, the bigger the investments that communities can and should expect. We also want to make sure that labor has a seat at the table so projects can include wage standards and labor agreements and prioritize local hiring.

The final part of my plan is to ensure that these hyperscale data centers do not receive tax benefits — full stop. New Yorkers work hard, and, on my watch, their tax dollars will not be used to benefit these large firms, these centers. That's why I'm proposing an end to all tax subsidies for data centers.

Now, no one can accuse New York of fearing innovation. We lead the nation in harnessing AI as the technology of the future. We're already building the largest supercomputer outside the private sector that is dedicated to public good. It's Empire AI, launched just years ago, and we're using AI to drive efficiencies across state government, saving millions of hours and dollars for our residents, and I'm excited about this.

But that said, a lot of Americans — for a lot of them, the specter of unchecked AI brings up fear, anxiety, a lot of worry. The threat of job displacement is real. People aren't afraid of technology, they're just afraid of being left behind by it, especially younger adults who wonder how they'll fit into an AI-powered future. Their feelings are valid, and we cannot ignore them. Just as automation had a seismic impact on our economy and our workforce generations ago, today it is AI that is changing our world and our workforce at warp speed.

For this reason, I've already convened our Future Works Commission filled with top experts and industry leaders, academia, academics, labor leaders. Everyone is at the table, technology experts. And I've asked them to do this: Study the risks and the rewards of AI, but also prepare our workers for the transition, if necessary, or an AI competency so they're ready to fill the jobs that are required today.

I want no one left behind. At our first meeting, I said I want my recommendations. I'm sure, like any commission, they feared this [was] going to go on for a few years. Yeah, I said I want the recommendations this fall, so get busy. Because I approach this with an incredible sense of urgency because that is what people are feeling, and I want them incorporated into my next State of the State address.

Now, I began my remarks today by asking you to just look out at this incredible horizon. Let's start by looking just around us inside. The building we're in right now was built in 1882 as a sugar refinery when factories lined New York's waterfront. Over the next century, our nation saw those jobs disappear, and New York had to reinvent itself once again, over and over, next as the financial capital of the world.

When this factory finally closed its doors in 2004, New York City and the real estate community came together, worked together to transform this building into something built for the new economy, a home for tech startups. But just as important to me is what's below us, Domino Park, a public community space beloved by the people who live here, built and paid for by the team behind this incredible development — truly a vast improvement over its industrial past.

Again, this is what happens when government and the private sector team up — they can create something quite extraordinary. And I think about this project, I think about one of my mother's favorite phrases: “Go into the world and do well, but more importantly, go into the world and do good.”

In fact, we have that — used to be on our refrigerator when I was growing up, and now it's inscribed on my mother's headstone. So her children and grandchildren and others will know that's what she stood for. I embody that sense as well every day. But that's how we do things in New York.

We want people here. We want them to invest. We want to grow their business and do well. But when you do well and you benefit from the talent, the land and the energy of New York, we expect you to do good for our communities. When you succeed because of New York, New Yorkers should succeed as well — it's that simple.

A couple years ago, I said in my State of the State, whoever owns AI owns the future. I stand by that. New York will always welcome investment and innovation, and we'll always stand up for our workers and our people. No one gets to build their future by asking hardworking New Yorkers to sacrifice theirs. So if you're willing to create good-paying jobs, you're willing to invest in communities that make your success possible, you'll find no stronger partner than the State of New York.

And I also believe this — that the businesses that build technology capable of changing civilization with AI are also capable of working with us to protect our power grid, to protect our water supplies and our communities. I believe it can be done, which is why as your Governor, I don't [just] want New York to be first. I want New York to be first in the right way, and that's why we're going to take the time to get it right. That is my commitment to the people of the great State of New York.

Thank you very much. Thank you. Thank you. Thank you. Let me welcome my partner in state government, our Senator, Senator Kristen — I was going to say Gillibrand. Kristen Gonzales, I apologize. There's a lot of Kirsten Gillibrands. Senator Gonzalez. Let's give it up for Senator Gonzalez.