Statement on New York State Imposing a Moratorium on Data Centers

Our statement from Building Congress President & CEO Carlo Scissura on New York State becoming the first state to impose a data center moratorium:

This data center moratorium will damage our state's economy, its workforce, and our competitive standing in the industries of tomorrow: plain and simple.

We don't say this lightly. Organizations across our industry don't always agree on everything, but here, every trade and specialty is united. And our message is simple: A blanket moratorium is the wrong tool for a real-world problem that demands careful consideration.

No one disputes that New York needs guardrails as data center development accelerates. Communities deserve protection from unchecked utility rate increases. Public sentiment matters. Environmental reviews matter. Labor protections matter. A moratorium doesn't address any of these protections. It shuts the door entirely for a period of time that could be long enough for New York to lose out on electric grid investment forever.

Consider the numbers. According to National Grid, the queue of large-load projects seeking to connect to New York's grid has grown from roughly 1 gigawatt to nearly 12 gigawatts in just four years. We share concerns about rising electricity costs being passed on to ratepayers, and the evidence actually points the other way. Grid modernization costs don't disappear when data centers do. They shift onto everyday New Yorkers, who will shoulder a larger share of infrastructure modernization.

And then there are the jobs - tens of thousands of them. When projects go to other states, the work goes with them, and so, often, do the workers.

We know our elected officials share real concerns, namely that no New Yorker should see their utility bill rise, and that any policy has to come with a serious plan for grid capacity and reliability. We agree completely.

That's exactly why the answer is smart, targeted regulation, fair cost allocation, and coordinated grid planning, not a blanket moratorium that treats every project as posing the same risk.

The Building Congress calls on the Governor to work with the legislature on a smarter path forward, one that puts real guardrails in place without slamming the door on the jobs, investment, and innovation that New York cannot afford to lose.

This moratorium should be eliminated, or, at worst, short-lived, or New York rate payers could be paying for it for decades to come.

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About The New York Building Congress

The New York Building Congress, a broad-based membership association celebrating its 105th year, is committed to promoting the growth and success of the construction industry in New York City and its environs. Learn more about the New York Building Congress at www.buildingcongress.com.