Data Center Debate: New York’s Ban Meets Federal Counterclaim

In response to mounting evidence that large “hyperscale” data centers can consume 50 megawatts or more and drive up electricity demand, New York Governor Kathy Hochul signed an executive order on Tuesday that bars the construction of such facilities for one year. Hochul warned that unchecked expansion “threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers.” New York is the first state to impose a moratorium, and more than a dozen other states have considered similar measures.

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Governor Hochul’s order targets the rapid growth of data centers, which industry analysts say can be built two to three times faster than many electricity-generation projects, outpacing grid capacity. Federal Energy Secretary Chris Wright, a former fracking executive, appeared on Fox News the following day to argue that data centers are “the greatest tool we have right now to stop the rise of electricity prices and ultimately to bring them back down.” Wright blamed “Democrat green energy policies,” including New York’s fracking ban and a climate law mandating a 2040 fossil-fuel transition, for high energy costs.

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The labor-focused outlet More Perfect Union labeled Wright’s claim “one of the most blatant lies we’ve ever heard,” asserting that “data centers are pushing energy prices up.” The Natural Resources Defense Council reported that recent PJM electricity auctions—covering 13 states and Washington, DC—have added $29 billion in costs since 2024, with some households seeing $20-30 higher monthly bills and projections of roughly $70 extra per month if data-center growth continues. PJM itself noted that “the primary driver of that growth is data centers.”

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• “Gov. Hochul has it exactly backward,” — Chris Wright, Energy Secretary

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• “Data centers are the greatest tool we have right now to stop the rise of electricity prices and ultimately to bring them back down.” — Chris Wright, Energy Secretary

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• “Energy is extremely expensive in New York and now sparse because of bad Democrat policies,” — Chris Wright, Energy Secretary

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• “Nothing to do with data centers.” — Chris Wright, Energy Secretary

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• “The primary driver of that growth is data centers,” — PJM press release

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• “Data centers are pushing energy prices up,” — More Perfect Union editorial

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