Top NYC business group opposes Gov. Hochul's one-year data center ban

New York City’s leading business advocacy organization is pushing back hard against Gov. Kathy Hochul’s one-year freeze on new high-powered data center construction across the state, warning that the policy is anti-business and could undermine New York’s economic momentum.

Hochul signed an executive order last week creating a statewide, one-year moratorium on new “hyperscale” data centers — massive facilities that require at least 50 megawatts of electricity to operate. The governor has argued that the pause will give New York time to plan for the facilities more responsibly.

Steve Fulop, CEO of the Partnership for the City of New York, said the decision risks putting the state at a disadvantage as artificial intelligence fuels soaring demand for data infrastructure. The group represents the city’s 300 largest companies, including major Wall Street firms and businesses across the financial services sector.

Gov. Kathy Hochul signing an executive order creating a one-year ban on data center construction in New York state on July 14, 2026. Gregory P. Mango for NY Post

“Ultimately, the solution is going to be whether data centers get built or they don’t get built,” Fulop said Sunday on 77 WABC’s “Cats Roundtable” program.

“The signal when you put a moratorium on this sort of stuff … is that it becomes a riskier proposition to put your money into New York versus maybe another state,” he told host John Catsimatidis.

He continued, “It sends a signal about our competitiveness to the private sector. Other states like Pennsylvania … continue to grow, and they haven’t put a moratorium on [data centers]. They work with the communities to find solutions. But they recognize that data centers are important.”

Data centers are the backbone of the modern digital economy, housing thousands of servers, storage systems and networking equipment that store, process and move enormous amounts of information.

Fulop pointed out that everyday online activity — from searching for information on a smartphone to streaming a television show — depends on data centers operating behind the scenes.

“We need more access to data,” he said.

Governor Kathy Hochul at a podium speaking, with a US flag behind her.

Critics claim Hochul’s executive order will put New York at a disadvantage in the AI race. Gregory P. Mango for NY Post

“A one-year moratorium accomplishes nothing. A one-year procrastination or delay doesn’t solve anything.”

New York City also wants to be a leader in emerging artificial intelligence, and supporters say data centers are needed to accomplish that.

The governor defended her one-year freeze — which immediately drew a rebuke from President Trump — on Sunday as the right approach.

She claimed local governments aren’t equipped to negotiate with the Big tech companies on an ad hoc basis.

“The state has to take the lead. We have to get it right,” Hochul said on CBS News’ “Face the Nation” program.

There are 30 pending applications to build data centers in the state, which she referred to as “flooding the zone.”

“There is a huge tax on our [energy] grid. I want to make sure the power is there for the large companies creating jobs,” Hochul said.

“New Yorkers want protection; there’s a lot of anxiety. Companies want certainty. We’ll give them both.”

The governor insisted her moratorium is not anti-business or anti-union, defending her record in bringing in jobs and building projects.

But the construction trades oppose the one-year ban, and critics have argued Hochul caved to the political left — including lawmakers with ties to the Democratic Socialists of America — who’ve pushed against data centers serving Big Tech.

“Technology should make our lives better, not pollute our water, strain our energy grid, or drive up our utility bills,” state Sen. Kristen Gonzalez, a DSA member who reps parts of Queens, Manhattan and Brooklyn, said last week.

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 with the far left.

“Kathy Hochul will always put the interests of [New York City 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 said.

Hochul’s team insisted her decision was not tied to politics or her re-election campaign.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Gavin Newsom’s Hidden Calendar Revealed After Legal Battle - Internewscast Journal

Gavin Newsom’s Hidden Calendar Revealed After Legal Battle

Busy at the Capitol — or not, Gov.? Gov. Gavin Newsom’s official…
New Orleans Becomes First Major U.S. City to Deploy AI in 911 Call Response - Internewscast Journal

New Orleans Becomes First Major U.S. City to Deploy AI in 911 Call Response

New Orleans is now the first city in the United States to…
Hasan Piker’s Mom Says She Doesn’t Love China Like Her Son - Internewscast Journal

Hasan Piker’s Mom Says She Doesn’t Love China Like Her Son

Hasan Piker’s outspoken admiration for communist China is not shared by at…
Israel’s New $634M German-Built Submarine Strengthens Deterrence Against Iran - Internewscast Journal

Israel’s New $634M German-Built Submarine Strengthens Deterrence Against Iran

Israel has received its newest, most advanced and costliest submarine from Germany,…
Gavin Newsom Backs Abdul El-Sayed, Igniting New Backlash - Internewscast Journal

Gavin Newsom Backs Abdul El-Sayed, Igniting New Backlash

I somehow ended up on California Gov. Gavin Newsom’s email distribution list,…
Parents Found Buried Behind Luxury Home as Police Launch International Manhunt for Son - Internewscast Journal

Parents Found Buried Behind Luxury Home as Police Launch International Manhunt for Son

Authorities have launched an international search for an Arizona man wanted in…
Masterminds behind California Forever plea for Gavin Newsom's help

California Forever Founders Plead for Gavin Newsom’s Help

The wealthy investors pushing to build a sweeping new “utopian” city in…
NIH Director Dr. Jay Bhattacharya's Remarks: Key Takeaways - Internewscast Journal

NIH Director Dr. Jay Bhattacharya’s Remarks: Key Takeaways

Washington — Dr. Jay Bhattacharya, director of the National Institutes of Health,…
Trump Says U.S. Only: Live Updates on His Latest Remarks - Internewscast Journal

Trump Says U.S. Only: Live Updates on His Latest Remarks

  1m ago Iran says Saudi-Pakistan-Turkey pact shows countries in region “cannot…
Colon Cancer Prevention Vaccines Enter Testing to Stop Tumors Before They Start - Internewscast Journal

Colon Cancer Prevention Vaccines Enter Testing to Stop Tumors Before They Start

HOUSTON, Texas — Dr. Stacy Norton was just 7 when colon cancer…
Mark Zuckerberg’s $300M Superyacht Accused of Alaska Boat Snub - Internewscast Journal

Mark Zuckerberg’s $300M Superyacht Accused of Alaska Boat Snub

Meta CEO Mark Zuckerberg is drawing scrutiny after reports that his $300…
DSA Activists Protest North Carolina Town’s Removal of Political Bus Stop Benches - Internewscast Journal

DSA Activists Protest North Carolina Town’s Removal of Political Bus Stop Benches

Democratic Socialists of America activists in Wilmington, North Carolina, are criticizing city…