Gov. Kathy Hochul has been criticized for yielding to Democratic socialists by making New York the first state to halt the construction of large data centers. Critics argue this decision cements her alignment with the Democratic Socialists of America, who have focused their campaigns nationwide on these hubs.
On Tuesday, Hochul signed an executive order instituting a one-year statewide moratorium on new “hyperscale” data centers requiring at least 50 megawatts of power to operate. The DSA, with chapters in cities like Seattle and Portland, opposes these developments, citing concerns about their alignment with Big Tech agendas, support for Israel, and the significant water and energy demands they entail.
Astra Taylor, a veteran socialist organizer and Occupy Wall Street activist, described the anti-data-center movement as “one of the biggest political opportunities” she has encountered. During a June 21 DSA Ecosocialism virtual event, she expressed satisfaction with the momentum the far-left opposition has gained.
Stu Smith, an analyst for the Manhattan Institute who has examined the DSA’s growing opposition to data centers, noted that Albany’s decision was largely due to the increasing influence of the far-left in lobbying and legislation.
“I think it’s silly because there are definitely people in New York City trying to make it the AI capital of the world,” he commented. “New York is really shooting itself in the foot by [imposing the moratorium].”
The timing of the moratorium coincides with Hochul’s reelection campaign, where she seeks to appease both far-left factions and her moderate Democratic base, according to critics.
State Sen. Kristen Gonzalez, a DSA member representing parts of Queens, Manhattan, and Brooklyn, praised Hochul’s decision. Gonzalez, who sponsored the “Responsible Data Center Development Act,” remarked, “Technology should make our lives better, not pollute our water, strain our energy grid, or drive up our utility bills.”
Hochul stated that her approach aims to balance safeguarding the state’s power grid while fostering the AI industry’s growth. However, Smith pointed out that New York could miss out on significant economic benefits, similar to those seen in Loudoun County, Virginia.
Loudoun County, known as “Data Center Alley,” handles 70% of the world’s daily internet traffic and hosts about 250 data centers. The industry occupies only 3% of the county’s land but contributes $1.3 billion in local property tax revenue, making it one of the wealthiest regions in the US.
President Trump and the Data Center Coalition have also criticized the moratorium, claiming it could harm New York’s economy and suggest the state is not business-friendly.
Jennifer Goodman, a spokesperson for Hochul, refuted claims that the governor supported the moratorium to appease far-left politicians, citing a Gallup poll indicating that 7 in 10 Americans oppose AI data centers in their neighborhoods.
“Gov. Hochul heard those concerns and took nation-leading action to protect New Yorkers, their utility bills, and their land and water – demonstrating that you can lead on AI innovation while putting people first,” Goodman stated.
Bruce Blakeman, a New York Republican gubernatorial candidate, accused Hochul of backing the moratorium for political gain with the far left. “Kathy Hochul will always put the interests of [NYC Mayor] Zohran Mamdani and big-government socialists ahead of New Yorkers, even if it means blocking economic opportunity while families struggle under the nation’s highest taxes and utility bills,” he told The Post.
