Earthjustice Encouraged by Governor Hochul’s Executive Order on Data Centers

New York, NY —

In an executive order issued this morning, Governor Hochul announced a first in the nation, statewide one-year moratorium on discretionary permitting for AI data centers. The executive order also considers new funding for communities and improvements to electric grid infrastructure.

Liz Moran, New York Policy Advocate at Earthjustice, issued the following statement in response:

“Earthjustice is pleased to see Governor Hochul taking decisive action on AI data centers. Communities across the country are witnessing how the unprecedented surge in AI data centers is spiking pollution from fossil fuels, straining the reliability of their grid, and driving up electricity bills. With 1 in 4 New Yorkers already unable to afford their energy bills, New York’s pause must ensure that any future AI data centers pay for their own energy needs rather than foisting new costs on ratepayers.

As the federal government slashes environmental protections, and after a legislative session that set climate progress back, we can’t afford new dirty fossil fuels powering AI data centers. We are eager to work with Governor Hochul to make sure this EO results in strong protections going forward, and we will continue to advocate for her to sign the Responsible Data Center Development Act.”

We look forward to the public benefit that can come from robust implementation that must ensure:

• There are no gaps for AI data center developers to try to bring projects online
• Investment funds will meaningfully benefit host communities and support smart grid improvements and clean energy infrastructure

Today’s EO is just a start. Many binding policy measures, like developing special rates for data centers, will be developed at the Public Service Commission. The PSC should advance the governor’s affordability goals by establishing a large load rate class that ensures data centers pay their fair share.

Effective regulation for AI data centers will ensure that everyday New Yorkers won’t be left paying for tech’s massive energy and water consumption, or for fossil fuel infrastructure built to power proposed facilities that may never materialize. New Yorkers are already paying three times more for energy than they did in prior years. Building new fossil fuel infrastructure to power AI data centers without adequate protections in place can drive up utility rates even more. Renewable energy paired with storage is faster, cheaper and far less polluting for host communities.

New York now joins a number of states adopting laws and policies to protect ratepayers and communities from unchecked AI data center expansion. With this EO and other important measures from the Responsible Data Center Development Act, New York has the opportunity to serve as a model for other states.