EAST FISHKILL, N.Y. – [Photo: Susan Watts/Office of Governor Kathy Hochul]
New York Governor Kathy Hochul, joined by U.S. Representatives Alexandria Ocasio-Cortez and Pat Ryan, visited Fishkill Farms, a family-owned, multigenerational farm in East Fishkill, Dutchess County to discuss growing concerns over the rapid expansion of large-scale artificial intelligence data centers and their impact on local communities.
During a roundtable with farmers, business owners, and environmental advocates, state and federal officials highlighted New York’s recently announced nation -leading moratorium on hyperscale data center development. The measure temporarily pauses discretionary state environmental permits for up to one year while authorities develop a regulatory framework to address concerns over energy consumption, water usage, land development, and rising utility costs.
According to a press release by the Governor’s office, New York State is experiencing an unprecedented surge in proposals for data center development driven by artificial intelligence and other computing operations that could require massive amounts of energy and water to run and cool thousands of computer servers.
Governor Hochul emphasized that the state must balance technological innovation with the protection of local communities.
“As artificial intelligence grows more powerful and transforms our world, we must ensure that New York’s farmers, small businesses, and families are not left behind,” Hochul said. “New Yorkers deserve a voice in decisions that affect their future.”
The issue has become particularly important in rural areas such as the Hudson Valley, where residents fear that large data center projects could place significant pressure on natural resources and existing infrastructure.
Representative Alexandria Ocasio-Cortez praised the Governor’s decision, arguing that communities should have a greater say before large technology companies establish energy-intensive facilities in their neighborhoods.
“Across the country, Silicon Valley billionaires are trying to impose data centers on communities that don’t want them…..New York is once again showing Americans what is possible when we put working people at the center of our agenda”, Ocasio-Cortez said.
Representative Pat Ryan was equally critical of unchecked data center expansion, warning about potential impacts on water supplies and electricity costs.
We’re not going to let anyone — especially not a bunch of billionaire tech oligarchs — come in here and poison our water, drive up our utility bills, and build this powerful technology that even they acknowledge could have devastating impacts for humankind. This is a fight that transcends so many of the divides in our country right now because we’re all united in putting our community ahead of corporate profits.
“We are united in putting our communities ahead of corporate profits,” Ryan stated. “The people who live here should decide what happens in their towns.” we the people are the ones to decide what happens in our lives and in our communities.”
As part of the Governor’s executive action, Empire State Development has been directed to create the nation’s first Community Investment Framework, designed to ensure that any future data center projects provide tangible benefits to local residents and meet strict environmental and economic standards.
The Hochul administration is also seeking legislation that would eliminate certain state sales tax exemptions currently available to large-scale data center operators.
Beyond the moratorium and in the absence of guidance from the federal government, Governor Hochul recently signed the Responsible AI Safety and Education (RAISE) Act, which introduces new transparency, safety, and incident-reporting requirements for major AI developers.
According to the press release, starting in November, New York will direct large frontier AI developers to register with the State and prepare for compliance with strict requirements on transparency, safety, and incident reporting as prescribed by the RAISE Act. Those strict standards require large frontier AI developers to report critical safety incidents within 72 hours. Beginning in January 2027, AI companies will be required to comply with those strict standards and provide regular reporting to the state’s new Office of Digital Innovation, Governance, Integrity and Trust (DIGIT) established within the New York State Department of Financial Services (DFS).
The Governor also emphasized that, in the coming months, she will be exploring ways to build on the RAISE Act as part of ongoing efforts to further strengthen New York’s nation-leading AI safety laws and regulations.
