By Hank Russell
The issue of data center moratoriums made its foray into the political arena recently after the governor’s recent announcement that she would halt construction and operation of hyperscale data centers throughout the state.
As previously reported in Long Island Life & Politics, Governor Kathy Hochul signed an executive order issuing a ban on the construction and operation of hyperscale data centers throughout the state for one year. The governor cited the potential cost to taxpayers and the impact on the state’s water and air quality and electrical grid.
A hyperscale data center is usually 100,000 square feet in size and operates at least 5,000 servers, according to a report from the Rockefeller Institute. These facilities are used to support cloud providers and generative AI. The report also stated that New York currently has 134 data centers in operation.
LILP also reported that local groups were split on the governor’s decision. The Long Island Association said that, while it shares the governor’s concerns about the impact on energy, water, the environment and the community in general, the moratorium will result in the state falling behind in the global artificial intelligence (AI) race. Vision Long Island, however, said this will give the state time to measure the impact on local communities and determine whether data centers will provide any true benefits.
On July 16 — two days after the state moratorium took effect — the Brookhaven Town Board voted unanimously to implement their own temporary ban on data centers. The only difference is that the moratorium will last 18 months. According to the town, this moratorium will provide the Department of Planning, Environment and Land Management with the time needed to develop comprehensive zoning regulations governing the location, design, and operation of Data Centers.
“As demand for these facilities continues to grow, the Town is taking a proactive approach to ensure future development is thoughtfully planned and compatible with surrounding communities,” the town said in a statement. “The Town of Brookhaven remains committed to thoughtful planning that supports responsible growth while protecting the quality of life, infrastructure, and environmental resources that residents value.”
However, Nassau County Executive Bruce Blakeman said that he will not impose any such moratorium on these facilities. Appearing on WGRZ-TV’s On The Agenda with Nate Benson, Blakeman — who is running for governor against Hochul — said that, although he would impose a countywide ban, “I would leave that up to the local municipalities.”
“I’ve talked to data center developers over the last couple of months and the interesting thing is, they’ve come up with new concepts where they’ll make these local communities their partners to share in the profits so that they can lower taxes, they can create prosperity. New jobs and rebuild infrastructure in a lot of these communities and repopulate these communities,” Blakeman said. “So, working with the local government to get their approval, there has got to be something in it for the local people, for the community people who are burdened by a big data center.”
Blakeman said, if he can make this a “win-win” for both the facilities and the community, “then we can put these data centers in places where people actually want them … if there’s an economic benefit.”
But New York State Democratic Party spokesperson Addison Dick said these data centers will increase electricity costs, burying families financially.
“While Governor Hochul ensures that when companies benefit from AI because of New York, New Yorkers do too, Bruce Blakeman and Donald Trump want working families to foot the bill for big data centers – jacking up utility costs and making local communities bear energy and environmental costs,” Dick said. “Governor Hochul is taking decisive action and putting New Yorkers first, which Blakeman knows nothing about – just like his boss, Donald Trump.”
In response, Blakeman said in a statement, “New York is last in economic development because our energy costs are 70% higher than the national average and Kathy Hochul doesn’t work with local governments and business leaders to figure out how to get things done. I will work with local government, business leaders and energy producers to modernize our economy to bring costs down and create good jobs.”