Hochul on Good Day NY: moratorium on hyperscale data centers, higher community payments and a pledge to ban tax breaks

Gov. Kathy Hochul told FOX 5’s Good Day New York that New York is imposing a temporary pause on construction of the largest, hyperscale data centers while the state develops rules to protect communities and the electric grid.

Key points from the Governor’s appearance

  • Hochul said the moratorium targets the “hyperscalers” — very large data centers that consume large amounts of power — and applies to facilities above the state’s 150-megawatt standard.
  • She said companies that want to locate such facilities in New York should “bring your own power” or pay a premium to use the grid, and should provide substantial community benefits — “I’m talking about millions of dollars — hundreds of millions of dollars to communities.”
  • The governor said she will seek to ban tax breaks for those projects in the next legislative session, arguing they already receive a major public benefit.
  • Hochul described the moratorium as temporary and said the pause will allow the state to lay out a framework; she said the moratorium “will be gone in a year.”
  • She framed the move as balancing economic development with protecting limited energy resources and local communities, noting that a 150-megawatt center can use as much power as roughly 50,000 homes.

Economic and workforce context

Hochul highlighted long-term job investments such as the Micron semiconductor project — which she described as a multidecade build with tens of thousands of jobs — contrasting those long-term employment gains with the temporary construction jobs created by data centers. She said the state will prioritize projects that deliver sustained job growth.

AI, regulation and other topics

The governor said New York is embracing AI at the state level to improve government efficiency while also preparing to manage workforce disruption caused by rapid AI adoption. She said she has directed reviews of state rules and regulations using AI tools to streamline government operations.

Homelessness and ICE detention comments

On homelessness, Hochul reiterated investments in supportive housing and said new state law allows communities to remove people who are unable to care for themselves as part of a care-and-treatment approach. She also criticized perceived federal overreach in immigration enforcement, citing a case she said involved a blind refugee from Buffalo who was detained and later froze to death; she called for investigations and accountability.

Attribution

The details above are drawn from remarks Gov. Hochul made during an appearance on FOX 5’s Good Day New York and from a rush transcript released by the Governor’s Press Office.

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