Hochul Adds New Restrictions to Data Center Development in New York

Gov. Kathy Hochul is expanding on her plans to rein in data center growth in New York.

The governor announced Monday a new round of transparency, safety and incident reporting requirements for data center developers and operators following a July moratorium on new data center developments above a certain size.

Developers and operators will need to report safety incidents occurring at sites within 72 hours to the newly created Office of Digital Innovation, Governance, Integrity and Trust (DIGIT). They will also be required to send DIGIT quarterly reports on potential catastrophic risks and send disclosure statements to the state government every two years.

All of this will go into effect starting Jan. 1, when the Responsible AI Safety and Education (RAISE) Act goes into full force, according to Hochul’s office.

“Donald Trump and Washington Republicans may be standing still as AI grows more unpredictable, but New York will not,” Hochul said in a statement. “When companies are building some of the most powerful technology in the world, people deserve to know what they’re doing to keep it safe, and those companies should be held accountable when things go wrong.”

Hochul indicated that state laws will be subject to change as the technology advances and that her office will be urging federal and international leaders to take similar action as the United Nations General Assembly meets in Manhattan this week.

Hochul’s moratorium on new data centers larger than 50 megawatts — which her administration said it imposed out of concern for scarcity of natural resources and the public power supply — is expected to expire in July 2027.

Mark Hallum can be reached at mhallum@commercialobserver.com.