New York just became the first state in America to impose a statewide moratorium on hyperscale data centers. Governor Kathy Hochul signed the ban targeting any facility drawing more than 50 megawatts of electricity, freezing construction while the Department of Public Service and Department of Environmental Conservation conduct a review — with a deadline of July 2027.
David Sacks, President Trump's White House AI czar, wasn't impressed.
"These data centers have become the scapegoat for all of the angst that people have about AI," Sacks said, dismantling the premise behind Hochul's moratorium in a single sentence. And he's right. The moratorium doesn't solve an energy problem. It creates a competitiveness problem — one that every other state in the country is happy to exploit.
The numbers tell the story Hochul doesn't want you to hear. Projects already seeking approval in New York represent more than 9,000 megawatts of new electricity demand — roughly one-third of the state's total annual power use. That's not a crisis. That's an economic boom knocking on New York's door. And Hochul just deadbolted it.
State Senator Kristen Gonzalez pointed to those 9,000 megawatts as justification for the pause, arguing the state needs time to assess the strain on its grid. But places like Virginia have been absorbing massive data center buildouts for years without declaring a state of emergency. Batavia, New York was reportedly in line for new development. Now those jobs and tax dollars will land somewhere with a governor who doesn't panic at the sight of progress.
The moratorium doesn't shut down existing facilities, and smaller projects under the 50-megawatt threshold can still move forward. So Hochul's ban specifically targets the biggest investments — the ones that bring the most jobs, the most infrastructure upgrades, and the most long-term economic benefit. She's not protecting New York's grid. She's kneecapping New York's future to score points with the anti-tech wing of her party.
Nassau County Executive Bruce Blakeman, a Republican, has positioned himself as Hochul's opponent, and moments like this hand him the argument on a silver platter. New Yorkers are already leaving the state in record waves. Crime is up. The subway is a disaster. And now the governor's official position is that the most transformative technology of the century needs to go build somewhere else while Albany forms a committee.
Every state in America is racing to attract AI infrastructure. Texas wants it. Virginia has it. Georgia is building it. New York's governor just told the industry to take a number and wait until 2027.
That's not governance. That's a resignation letter written in slow motion.