February 18, 2026
The Honorable Kathy Hochul
Governor, State of New York
NYS State Capitol Building
Albany, NY 12224
Dear Governor Hochul,
On behalf of the Niagara USA Chamber of Commerce and the employers, workers, and communities we represent, we write in strong opposition to the proposed statewide moratorium on new large-scale data centers.
A blanket moratorium is not thoughtful regulation. It is an economic stop sign.
New York is currently competing in one of the most capital-intensive, fast-moving infrastructure markets in the world. Data center projects are measured in hundreds of millions – often billions – of dollars. They are highly mobile. When states introduce uncertainty, projects do not wait. They relocate.
Other states are not pausing. They are refining.
Ohio has implemented large-load tariff structures requiring data centers to cover at least 85% of their subscribed energy to protect ratepayers. Texas has adopted structured interconnection standards and financial commitment requirements to prevent stranded infrastructure costs. Maryland is studying impacts while simultaneously designing protections to ensure residential customers are held harmless.
They are solving for cost allocation.
They are not shutting the door.
The proposed New York moratorium, by contrast, would halt permitting for facilities of 20 megawatts or more – and as drafted, applies even to permits already pending. That level of retroactive uncertainty sends an unmistakable message to capital markets: New York is not predictable, and investing in New York is risky.
In Niagara County, this issue is not theoretical.
Our region has already demonstrated that data centers can operate successfully and responsibly here. The former Yahoo data center campus in Lockport was sited in Western New York for clear reasons: cooler temperatures, prevailing winds that enable free cooling strategies, and access to low-cost hydropower from the New York Power Authority. Those are structural advantages. They reduce energy intensity and operational strain compared to warmer climates.
That project brought significant construction employment and long-term technical jobs to our region. It continues to operate today under new ownership, sustaining employment and reinforcing that this is durable infrastructure – not speculative development.
We currently have a data center under construction in Niagara County and additional projects proposed. These represent construction jobs, engineering contracts, supply chain spending, long-term operations roles, and expanded tax base support for schools, municipalities, and county government.
A statewide moratorium jeopardizes all of that.
Construction jobs in these projects number in the hundreds. Long-term employment includes high-skilled technical and facility management positions. Local governments see meaningful increases in property tax revenue over multi-decade horizons. These are exactly the types of investments Upstate New York has worked to attract for years.
To halt them statewide – regardless of local conditions, readiness, or infrastructure capacity – is a blunt and short-sighted response.
We support responsible regulation. If the Legislature wishes to strengthen cost allocation protections so ratepayers are insulated from grid upgrade costs, that conversation is appropriate. If environmental performance standards should be clarified, that discussion is welcome. If large-load financial commitment requirements are needed to prevent speculative queue behavior, that can be implemented.
But a moratorium abandons nuance in favor of pause.
It is also critical to make a clear distinction between data centers and cryptocurrency mining operations. These are fundamentally different industries with different energy profiles, economic impacts, and regulatory considerations. Conflating the two leads to misguided policy that punishes legitimate, high-value digital infrastructure development.
New York cannot afford to signal that major infrastructure investments are subject to sudden statewide freezes. At a time when artificial intelligence, cloud computing, advanced manufacturing, and digital services are expanding rapidly, data centers are foundational infrastructure – as essential as rail, ports, or broadband.
Western New York is particularly well positioned to host energy-efficient facilities because of our climate and existing power resources. If New York steps back, neighboring states will not.
We respectfully urge you to reject the proposed moratorium and instead pursue targeted regulatory reforms that protect consumers while allowing responsible economic development to proceed.
Niagara County stands ready to continue competing – but we need Albany to compete with us, not against us.
Sincerely,
Craig W. Turner
Interim Executive Director
Niagara USA Chamber of Commerce
Cc:
NYS Senator Robert Ortt
NYS Assemblyman Angelo Morinello
NYS Assemblyman William Conrad
NYS Assemblyman Paul Bologna
Niagara Gazette