Gordon Op-ed: Gov. Hochul should veto the data center moratorium

On July 3, 2026 the Albany Times Union published SPC Director of Public Policy & External Affairs John R. Gordon's commentary on the data center moratorium that recently passed by both houses of the New York State legislature. It examines why New York's investments in artificial intelligence, advanced nuclear energy, and electric grid modernization are fundamentally at odds with policies that discourage new data center development.

The original text is reproduced below. It can also be found on the Times-Unions site here.

Gov. Hochul should veto the data center moratorium

Over the past two years, Gov. Kathy Hochul has advanced a vision that would position New York as a leader in artificial intelligence, attract technology investment, modernize electric infrastructure and expand the state's supply of reliable electricity to meet growing demand.

The Legislature has now passed a bill that presents Gov. Hochul with a fundamental choice about our economic future: Will New York continue pursuing that vision, or will it temporarily reverse course?

The Responsible Data Center Development Act, which passed both houses of the Legislature on June 4, would impose a one-year moratorium on new data center permitting. But the governor’s approach has always been to accommodate growth responsibly while ensuring that the infrastructure exists to support it. Vetoing the bill would be consistent with that vision and would reaffirm that New York intends to compete — not retreat — in the race for the industries, investment and jobs that will define America's economic future.

Beginning with the launch of Empire AI in 2024, the Hochul administration has recognized that leadership in artificial intelligence requires more than research institutions and public-private partnerships. It requires the physical infrastructure necessary to support advanced computing and technological innovation.

Artificial intelligence requires computing infrastructure. Computing infrastructure requires data centers. Data centers require reliable electricity. And reliable electricity requires investment in generation, transmission and grid modernization.

That reality has increasingly shaped the governor's broader energy agenda. This year, her administration advanced interconnection reforms, sought to ensure that large-load customers pay their fair share of system costs, announced plans to pursue at least one gigawatt of new nuclear generation and, most recently, launched a major initiative to facilitate an additional four gigawatts of advanced nuclear development.

Taken together, these initiatives reflect a coherent strategy for preparing New York's electric system to support the next generation of economic growth.

The governor's recent nuclear initiative is particularly telling. It reflects a recognition that economic competitiveness and grid reliability are increasingly interdependent. New York is not planning for a future of stagnant electricity demand. It is planning for a future in which artificial intelligence, advanced manufacturing, electrification and digital infrastructure drive electricity demand far beyond today's levels.

Building a new nuclear backbone while simultaneously imposing a moratorium on a major source of future demand would send conflicting signals about New York's economic direction.

The stakes extend beyond the data center industry itself. States across the country are competing aggressively to attract the investment, jobs, and technological innovation associated with AI and advanced computing. The question facing New York is whether it intends to compete for that growth or signal uncertainty at precisely the moment when major investment decisions are being made.

The Responsible Data Center Development Act addresses legitimate concerns. Policymakers should ensure that large electricity users pay the costs associated with serving their facilities. They should protect ratepayers, maintain reliability and carefully evaluate infrastructure needs. But a moratorium would risk undermining the very strategy New York is pursuing to support future economic growth and electricity demand.

Gov. Hochul has already articulated a constructive path forward that recognizes the connection between AI development, data center growth, interconnection reform and advanced nuclear deployment. In other words: The state can address data center concerns while continuing to compete for the industries that will shape the next generation of economic growth.

John R. Gordon is director of public policy and external affairs for the Strategic Power Coalition, an AI and infrastructure advancement advocacy group.

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