Governor Kathy Hochul has paused data center construction. Reporting from WXXI:

The governor’s order follows a bill passed by the State Legislature last month, which also contains a one-year moratorium. Members of the governor’s team say that bill is complicated and will take some time to work through, and Hochul feels the state needs to act sooner to address concerns.

And some details from the executive order itself:

The Department of Public Service (DPS) is directed to examine the impacts associated with the interconnection of data centers to the electric distribution network through its proceeding under Case 26-E-0045, Proceeding on Motion of the Commission to Address Interconnection Reforms for Large Loads. In connection with such proceeding, DPS is further directed to initiate a formal public process, including public comment and a public hearing, to create a Generic Environmental Impact Statement in accordance with the requirements of the State Environmental Quality Review Act at Article 8 of the Environmental Conservation Law and the regulations promulgated thereunder (collectively, SEQRA), to assess the potential environmental impacts of the construction and operation of data centers in the State, including energy demand, water use and quality, air quality, disproportionate impacts on disadvantaged communities, and noise levels.

Too-long-didn’t-read summary: let’s get our shit together on energy and environmental impact. I agree, that needs to happen. But as I’ve blogged about before, I’m still skeptical of a pause.

We are going to have to build these data centers eventually. If that’s true, the important question isn’t when, but how. And the how should include requirements like using a certain percentage of renewable energy. Passing laws now with those requirements would effectively pause construction, yet do it while giving data centers an environmentally sustainable path forward.

A blanket pause like in the executive order also benefits the companies (OpenAI, Microsoft, Google…) that went all-in on construction a year before everyone else. Anyone who needs compute soon and was considering New York will abandon those plans and look to other states.

At the same time this week, Google announced a massive solar farm project in Arkansas. Sounds pretty good:

As both an anchor investor and an offtaker, Google will support the development of the first two phases of the project, which will add 1.6 GWdc of solar generation and 1.9 GWh of battery storage to the regional grid. The full three-phase project will deliver 2.5 GWdc of new solar generation and 2.9 GWh of new battery storage to the regional grid once the facility is fully operational in 2029.

The project will also use steel manufactured in Arkansas, so it has local benefits beyond energy.

The crazy amount of money flowing into the AI labs still feels like a once-a-generation chance to invest in something good. Instead of saying, “Don’t spend your money yet”, I’d like to see, “Spend your money on this.”