BY JEFF CHUDZINSKINorth Country This Week

Governor Kathy Hochul has signed an executive order pausing the construction of large-scale data centers for one year as state legislation already passed by lawmakers remains on her desk. 

Hochul, who is seeking reelection, announced the moratorium July 14, saying the state has directed agencies to assess the effects such centers would have on the environment, as well as energy use. 

The moratorium is the first state-wide pause in the nation as agencies and municipalities grapple with the impact of artificial intelligence. 

“New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too,” Hochul said in a statement. 

Moratorium bill not signed

What’s strange about her order is that state lawmakers  already passed legislation that would have also implemented a one-year moratorium on data centers, which Hochul has yet to sign. 

Some lawmakers, including Assemblyman Scott Gray, called on Hochul to veto the legislation that has been deemed "heavy handed" and "clumsy" by some. 

Gray spoke with North Country This Week shortly after the legislation was passed, clarifying he was in favor of a moratorium but that he wanted the legislation to ensure local siting authority. 

"The power to decide where and when data centers are built should rest solely with the counties and municipalities impacted, not with a state agency," he said at the time. 

Under Hochul's executive order, the state will temporarily halt the issues of permits for "hyper scale" data centers, those which use more than 50 megawatts of power in operation. 

Hochul has pushed for the use of renewable energy across the state since taking office but that push has also taken some power generation sites offline if they use fossil fuels. 

In doing so, the state's power grid has been heavily stressed, state officials said. 

Data centers would place a major strain on the grid, potentially causing brown out and black outs during peak use, critics have said. 

With a moratorium in place, state officials say regulatory agencies and lawmakers will establish a framework for assessing impacts on the environment and host communities. 

The executive order will take effect immediately and is not expected to impact data use for health care systems, financial institutions or universities, officials said. 

Political pushback

Data center plans have experienced widespread backlash across the political spectrum, with both Democrats and Republicans alike calling for outright bans and stringent regulations on the facilities. 

Some have called for data centers to find means to generate their own power to offset their usage, while others have called for financial incentives for host communities. 

Many Native American populations have been vocal critics of data centers as well, including the Seminole Nation which passed a complete moratorium on data center development on tribal lands. 

In Massena, Akwesasne tribal members have been vocal critics of a planned data center expansion at the former Alcoa East location, which is owned and operated by NYDIG. 

The advocacy group Mohawks United for Safety and Health (MUSH) have maintained a strong presence at town board and planning board meetings in recent months. 

They also have protested in front of town hall in Massena and held multiple information sessions to raise awareness regarding the potential impacts of data centers. 

At the county level, legislators have also voiced major concerns about data centers, noting that while a ban or moratorium is not legally allowed at the county level, they would continue to encourage municipalities to make their own decisions with support from the county. 

Both Canton and Potsdam are currently weighing moratoriums and bans on data centers.