New York Gov. Kathy Hochul announces moratorium on data centers

[00:00:00] Speaker 1: - Kathy Hochul is issuing an executive order enacting the nation's first statewide moratorium on data centers. The order pauses construction of the largest data centers for one year while the state comes up with a regulatory framework. Governor Hochul joins me now live with more. Good to see you, Governor. You know, earlier this year, you referred to a massive data center proposal in Western New York as a local decision. So why issue this executive order now? [00:00:27] Kathy Hochul: - What has happened is the scale of projects. These companies have decided that they would sort of flood the zone all over America. They're putting in more and more applications, taxing local resources in terms of small towns in particular that have to go through the review process and not sure how much they can get in community benefits and how much power should they be using. And I said, why don't we step back and let the state take control here, where this moratorium, as you mentioned, first in the nation simply says, New York doesn't just want to be first. We want to be the first to get it right. And what that entails is ensuring that these companies, these huge hyperscalers, will make sure that they cover their own costs for power. Either bring your own power or pay a premium to use the grid because I already have a shortage of power for the existing businesses and our hardworking New Yorkers who are paying through the nose in utility bills. I can't say they're going to be charged more because of the existence of these companies. They have to pay their fair share. Plus, I want the communities to benefit in significant ways with investments. And I want them also, these companies, to contribute to a larger fund that'll help us support grid reinvestment. So we're going to do it in a smart way, and we just need a little time to do it. [00:01:39] Speaker 1: - So let me ask you, the executive order isn't as aggressive as a bill the state legislature actually passed last month. Do you plan to sign that measure, or are you going to veto it? [00:01:50] Kathy Hochul: - Well, I'm looking at that. I have hundreds and hundreds of bills yet to review before the end of the year, but I wanted to make sure we came up with a rational number. For example, I don't want to include data centers that support research centers and universities and healthcare organizations. So we came up with a threshold of 50 megawatts, as defining the larger ones. Those smaller are not affected. But again, I want to get this right. And I know there's a lot of anxiety around AI overall. New York embraces innovation, always have, always will. But we want to make sure that if you're going to succeed in New York, that all New Yorkers succeed. We want to make sure that we look at this in a smart way that can be a template for other states as well. [00:02:31] Speaker 1: - Well, you know this is quite the hot button issue in an election year. So what are you saying to your critics who say, hey, look, she's just punting it until after the election? [00:02:42] Kathy Hochul: - Not true. I focus on what is best for New Yorkers. I mean, I talked about this for years. Are we willing to embrace AI, but there has to be a responsible response from New Yorkers and say, we want the benefits. We also want to make sure that we also get benefits for ourselves as well. And so I disagree with that assessment. And I announced this in my state of the state, long before campaign season, that I want these huge consumers of power to pay their own way. It's only fair. And that's what I'm fighting for. [00:03:11] Speaker 1: - Well, you know opponents of the executive order, like Pennsylvania Senator John Fetterman, say that we're ceding victory to AI in China. [00:03:18] Kathy Hochul: Are we? - No, we are not. We're doing it in a smart way. Other states should follow our lead. We're going to get it right in New York. That's what we always do. Happy to lead, but it's leading in a way that's gonna have benefits for our communities. And to say that, yes, innovation is welcome here, but you're gonna do it the right way. That's what this moratorium is about. [00:03:35] Speaker 1: - Speaking of leading, let's talk about your reelection campaign, shall we? Because the headline on New York's primary night was the three democratic socialists who beat establishment Democrats with the backing of Mayor Zoran Mamdani. Do you see the left wing of the Democratic Party as a liability here with voters outside of New York City? [00:03:55] Kathy Hochul: - I will say this, I embrace the energy, the fact that so many people have never voted for and now participating in the process. And what I've said I want to do with, especially in these districts in New York City, let's export that out to the districts that are my battleground races. I know the most important thing we can do here in New York is to make sure that we win enough seats, that we can ensure that the Congress is no longer in the clutches of Republicans, that the Democrats take control, at least as a check on the president. And by doing so here in New York, I want to embrace all this excitement and energy and participation, so I welcome this. You look at one district versus another district upstate, the same person would probably not get elected. That's what I love about New York. It is our great political diversity and people, as long as they're involved in the process, then I welcome them. [00:04:44] Speaker 1: - What do you like about this socialist momentum [00:04:46] Kathy Hochul: that's happening right now? - What I see is that they're focusing on something I've been long focused on. That is the high cost of living, affordability, the cost of childcare, something I worked very closely with the mayor on to deliver for New Yorkers, on a path to universal childcare, driving down the high cost of auto insurance, making sure that we do take every step we can to break down the barriers to building more affordable housing. So everyone is aligned in our party on standing up to the Trump administration, but also fighting for everyday New Yorkers who are just feeling under siege. That's why this moratorium is so important. I cannot have people who are paying such high utility rates have to pay more because of a company that comes to their town. So that's where there's alignment. We don't have to agree on everything. We surely do not. There's many things I do not agree with, but let's just look at foundationally. What is driving so much of this energy? I'm embracing it, harnessing it and putting it to work. [00:05:42] Speaker 1: - With regard to what you don't agree with, what's your main concern? [00:05:46] Kathy Hochul: - I think that we need to continue focusing on embracing the business community. I wanna make sure that those who are gonna be successful do it here because their benefits are enormous. They contribute to our tax base, which allows us to be supporting a lot of these causes. And we'd like the jobs they create. So I wanna make sure that all of our policies go towards supporting New Yorkers, but also embracing the job creators that we wanna welcome here. [00:06:12] Speaker 1: - So the road to a Democratic House majority will undoubtedly have to include some flips in New York. Nancy Pelosi actually blamed your narrow margin of victory in 2022 for giving Republicans control of the chamber. Do you think you're in a better position now than you were four years ago? [00:06:28] Kathy Hochul: - I am, but I've always disagreed with that assessment, but that's another topic. I would say we are in a far better position. People know I'm the leader of the Democratic Party. I'm the leader of the state. And now we have the proof that we can lead in a very, very thoughtful way that is addressing the real concerns. I was the first woman governor ever in the state. A lot of people weren't sure whether or not that was gonna be something that worked out or not. It was new. And we've demonstrated that my approach to governing has been responsive, putting New Yorkers first, and now we have the results to show for it. The biggest worries back in 2022 were about crime. Crime was off the charts across the country, not just New York, but we have worked so hard to drive down New York, New York's crime rates and the subways, our streets and our small towns in historic levels. So I'm focusing on what we've done, $3 billion invested in public safety. And I go to small towns, police departments, and they're grateful they have a governor who's still with them to help do this. That's the foundation of everything. When people feel safe again, they feel good about their lives, they feel secure. And then we build up from that, but I've delivered that and I'm really proud of that. And that's what the four years in office have allowed me to do. [00:07:38] Speaker 1: So if you win in November, will New York redistrict ahead of the 2028 election? [00:07:44] Kathy Hochul: We believe we will. There's a plan to do this. And what I say is we wouldn't have launched this fight, but we also went to fight fire with fire. When other states are having midterm districting, mid-decade redistricting to give them an advantage at the direction of Donald Trump doing his bidding, then I have to look at our state and say, we can't sit on the sidelines in our fight for this precious, precious concept known as democracy. As we just celebrated the 250th anniversary of America, it's upon all of us to step up and do whatever we can in our states as leaders to protect that from being destroyed. And that's how serious this is. I want to fight for our democracy. And if it takes changing the rules temporarily, I'm willing to do that. [00:08:30] Speaker 1: New York Governor Kathy Hochul, appreciate your time today. Thank you.