Spectrum News: Could the data center moratorium cost New York grid investments?

July 23rd, 2026

Jul. 23, 2026 – Watch full piece here.

It’s a part of the data center conversation that’s gaining more traction, and that’s allowing data centers in the state of New York if they take steps to prevent higher electricity prices.

“In my State of the State address, I specifically said that I believe these huge consumers of power, these data centers need to bring their own power, power to the site, or contribute a premium on what they’re paying for the energy they’re consuming,” said Gov. Kathy Hochul.

Hochul made those comments Wednesday during a roundtable with business, state, and local leaders from Long Island. The conversation was to highlight her executive order creating the nation’s first moratorium on new hyperscale data centers.

Hochul says over the next year, a public service commission will consider options including setting up a separate rate system for data centers and what bringing their own power looks like.

“So, that’s ongoing and that is going to take the rest of the year, which is part of the argument on the moratorium,” said Hochul.

In new opinion polling from the conservative leaning Empire Center:

43% of 600 voters likely to vote in the 2026 general election want data centers to build their own power sources rather than draw electricity from the grid
16% would allow partial grid access if data centers invested in local grid upgrades
One-third don’t want data centers under any circumstances

This survey comes as some experts in the business sector are sounding the alarm on the state’s data center moratorium, saying a year is too long, and it could shut out the potential for centers to make grid investments as we’re seeing in other states like Arkansas.

“Other states even though they’re generating plenty of electricity and they’re continuing to add they can’t keep up with the amount of the demand,” said Justin Wilcox, executive director of Upstate United, a non-partisan business and taxpayer advocacy coalition that focuses on growing the upstate economy. “What you see in those states happening is the hyper scalers are stepping in and saying look out of necessity we’re going to bring our own power. We’re going to build our own nuclear facilities.”

On Thursday, President Donald Trump weighed in on this controversy making a public commitment with the Ratepayer Protection Pledge.

According to the White House, “hyperscale AI companies, and the utilities and data center developers behind them will build, bring, or buy every kilowatt their facilities need and cover every dollar of the infrastructure that delivers it.”

“We are the hottest in the world,” said Trump. “At the same time, we know the data centers and AI are dramatically increasing the demand for electricity. It’s only fair that the cost of building the new infrastructure required to meet this demand should be borne by the corporation themselves and not by the American consumers.”

Trump says with this pledge, tech companies have committed to building all the energy infrastructure required to meet the demand they’re placing on the grid. Trump says companies not the American people will foot the bill.