Gov. Kathy Hochul is facing criticism from opponents who say she yielded to pressure from democratic socialist activists by making New York the first state to halt construction of major data centers, critics told The Post.
On Tuesday, Hochul signed an executive order creating a one-year statewide moratorium on new “hyperscale” data centers — facilities that require at least 50 megawatts of electricity to operate. Critics argue the move aligns with the priorities of the Democratic Socialists of America, which has increasingly targeted large data-center projects in campaigns around the country.
DSA chapters in cities including Seattle and Portland have organized against proposed data-center developments, arguing the facilities advance a Big Tech agenda, pointing to industry ties to support for Israel, and raising environmental concerns over heavy water use and enormous energy demand.
Astra Taylor, a longtime socialist organizer and Occupy Wall Street veteran, described the anti-data-center movement as “one of the biggest political opportunities that I’ve personally ever seen” during a June 21 DSA Ecosocialism virtual event, saying the far-left campaign is “taking this moment by storm.”
New York moved first largely because of the far left’s growing influence in lobbying circles and the state Legislature, according to Stu Smith, a Manhattan Institute analyst who has examined the DSA’s expanding opposition to data centers.
“I think it’s silly because there are definitely people in New York City trying to make it the AI capital of the world,” Smith said.
“New York is really shooting itself in the foot by [imposing the moratorium],” he added.
Opponents also noted that the freeze on new permits comes as Hochul is navigating a reelection cycle, with critics saying she is trying to appeal to the party’s progressive wing while still holding onto support from more moderate Democrats.
Hochul even drew rave reviews from state Sen. Kristen Gonzalez — the card-carrying DSA member who represents parts of Queens, Manhattan and Brooklyn, and sponsored the moratorium legislation, called the “Responsible Data Center Development Act.”
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“Technology should make our lives better, not pollute our water, strain our energy grid, or drive up our utility bills,” Gonzalez said Tuesday.
Hochul has claimed she pursued a middle-ground between protecting the state — and its already-strained power grid — and helping to incubate the rapidly developing AI industry.
But the Empire State needs to only look south to Loudoun County, Virginia, to see what riches it’s missing out on to satisfy socialists, said Smith.
Loudoun handles 70% of the world’s daily internet traffic and is home to roughly 250 data centers.
Often called “Data Center Alley,” the industry has made Loudoun one of the wealthiest regions in the US, as data centers make up only 3% of the county’s land but generate a whopping $1.3 billion in local property tax revenue.
Others critical of the move include President Trump and the Data Center Coalition, which claims a yearlong moratorium will “undermine New York’s economy and send a signal that the state is closed for business.”
Hochul spokesperson Jennifer Goodman, said anyone suggesting the governor supported the moratorium to cater to far-left pols “is disconnected from reality,” citing a recent Gallup poll showing 7 in 10 Americans oppose the construction of 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,” she said.
New York Republican gubernatorial candidate Bruce Blakeman — who supports data-center industry expansion — accused Hochul of backing the moratorium because she thinks it’ll score her political capital, and votes, 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.
