Gov. Hochul signs landmark order on AI data centers, issues challenge to tech companies

[00:00:00] Speaker 1: New York has become the first state to impose a moratorium on large new data centers. These are the facilities driving the AI boom. Technology companies are racing to build them, but they also have led to growing concerns about power costs, straining water supplies, and burdens on local communities. That prompted New York Governor Kathy Hochul to sign an executive order yesterday pausing state environmental permits for data centers for up to one year. The order gives officials time to create a regulatory framework the governor says will protect the environment, the energy grid, and communities across the state of New York. Governor Hochul joins us in studio now. Governor, it's great to see you. Good morning. I think a lot of people are just now waking up to this issue about these data centers. And as we were just discussing, this is not a left-right issue. You're seeing across the country real concerns. So why did you take this step yesterday? Because New York is the kind of state [00:00:53] Kathy Hochul: that wants to not just be first, but be the first to get it right. So what we do here will certainly be a model for other states. What we're dealing with is the specter of these huge hyperscale AI data centers that are being built in mass around the country, many projects coming to New York, but we've not stepped back and said, what is the cost for all of us? What are New Yorkers going to have to put up with for this massive center? It's not job creation. There's not a lot of jobs associated with once the building construction phase is over. So they're a huge guzzler of energy, and I have limited resources here in the state that I'm trying to preserve for the real innovation economy. The jobs like the microns, they also affect the water supply. They also affect, you know, the noise in the communities is can be incredible. And so if you're one of these small communities in upstate New York, where they're looking to build because there's so much more space, they're not coming to Manhattan. They're going to our upstate communities. Those communities don't have the negotiating power either. So these large companies, I want them to have to bring your own power source. I said this in my stay-of-state, bring your own power source or pay a premium to tap into our grid. I don't want our local rate payers who are already dealing with sky-high utility bills to have the burden with the cost of basically subsidizing these huge massive centers. Now, that does not mean we're anti-AI. We embrace it here. We embrace innovation, and that is why I'm putting a one-year pause on this for us to get it right. [00:02:21] Speaker 1: There's talk of a federal pause, in fact, in Congress. Even some Democrats have said that goes too far, that the AI boom is coming. We need to embrace it. So the AI companies effectively are saying, this is all happening? These data centers are going to go somewhere, why not, in your state where we could create some jobs for you? What do you say to that? I say you can come within the parameters [00:02:42] Kathy Hochul: that we're creating. You know, give us the time to get it right. This is not just the Wild West. You get to pick a huge swath of land in upstate New York. And if you've seen these in person, and I have, they are so massive. They're like towns. And they dominate. And you look in there, well, are there thousands of people working in there? There's not. But I understand why it's important. And I'm using AI right now. I just use AI to look at every aspect of state government to come up with recommendations on how we can cut red tape, how we can cut fees. And so I'm utilizing this tool. I'm not saying we're not embracing it. I want those companies here. But companies want one thing. They want certainty. Tell us the rules of the road. New Yorkers want protections. New York will give them both. [00:03:29] Speaker 3: So, Governor, your neighboring governor, Governor Cheryl New Jersey, was here last week. We had a conversation that included AI centers. And she acknowledged the sort of tricky balance because of all the concerns you've laid out. But also she said, well, I want our state to be at the forefront of innovation. Like, this will lead to other good things at our hospitals and our schools and the like. So how do you factor that in, especially when we suddenly see a remarkable shift in public opinion about AI centers? The public is soured on AI and done so dramatically for fears of job loss, but also because of costs, noise and the like. How do you walk that [00:04:03] Kathy Hochul: tightrope? I put a challenge out to these AI companies. Those that created the possibility of literally changing civilization with artificial intelligence, they have to be able to figure out how to consume less power, how to consume less water, how to be disruptive. I challenge them to come up with this solution or there will be a backlash against them. People are fed up with what is happening, not just in their communities, but the whole disruptive effect of AI. Talk to any young person who maybe studied coding and computer science were told, you'll always have a job if you go into the STEM fields. And they're the ones being told, I'm sorry, your job is being replaced by AI. I literally held a forum with about 10 of these individuals in my office, people whose boss had said, you just lost your job because of AI. They're heartbroken. Their dreams are now deferred. They don't know what the next step is. So we also, as a society and as government leaders, have to acknowledge there's a lot of stress and anxiety going on right now, especially young people. And we have to say, we're going to get it right. We understand the power of AI, but I don't want our young people to feel that this innovation is leaving them behind. They have to be part of it. So literally last week, my first commission started. I had my first meeting of my future works commission, another angle here, where I'm bringing together experts in every aspect of this to find out how we solve this crisis. We cannot leave these young people behind. [00:05:27] Speaker 1: It's been interesting to see, like I said, both sides of the aisle applauding your move yesterday as just, let's slow down a little bit. Let's pump the brakes and make sure we get this right. I've got to ask you while we have you here, the World Cup final is coming up this weekend across the river. We're calling it New York, New Jersey over at MetLife Stadium, but also just an extraordinary summer, let's be honest, from the Knicks winning the title, the World Cup, Taylor Swift got married at the Garden. It's all happening. What has this summer been like to you? We also talked about that extraordinary ship parade and the fireworks on the 4th of July in your state. [00:05:59] Kathy Hochul: It is, it has been magical. It has made all of us so proud to be New Yorkers, proud to be Americans, especially on the 4th of July. It was the most unifying experience to see people coming together, whether it's the crowds in the streets celebrating the Knicks, whether it's the people from all over the world coming to cheer on their team, not necessarily at the World Cup, but in all the bars. The bars in my neighborhood are packed and I walk in and I'm celebrating. I'm having a great time with everybody. So it has been the summer of fun for sure. But let's not lose this moment. Let's not let it dissipate as we turn into August and September and we get back to our life. Let's capture this and say, you know, it just reminds us we're Americans first. We have unifying forces, whether it's sports or music or, you know, the talent we see. And it's just, I think this is something that reminds people of what's so extraordinary about New York, but also this is also a summer. I'm going to point this out. We have had some of the safest streets, safest events. Subway crime is down. The lowest it's been in 16 years. So all the anxiety we talked about when I first got elected a few years ago, all that is dissipating. So it gives that foundation of security. I'm safe going on the subway. I'm safe going out to a bar late at night. And that has calmed everything down this city. So this is really a renaissance for [00:07:17] Speaker 1: New York. Democratic governor of New York, Kathy Hochul, governor, thanks so much. We appreciate it. [00:07:21] Kathy Hochul: Thank you. [00:07:41] Speaker ?: Thank you.