Lawler Says Hochul Data Center Pause Sends Businesses a 'Don't Come Here' Message
Key Takeaways
- •Gov. Kathy Hochul announced a statewide moratorium of up to one year on new hyperscale data centers on July 14.
- •The pause applies to state environmental permits while New York develops rules aimed at protecting utility ratepayers and managing energy and infrastructure needs.
- •Rep. Mike Lawler said the decision could discourage companies from investing in New York and push business to other states.
- •New York has recorded net out-migration among part-year resident tax filers every year since 2015, including a net loss of 13,662 filers in 2024.
- •Lawler said nuclear plant closures, natural gas and pipeline limits, and electrification requirements are contributing to the state’s business and energy challenges.
New York’s business climate is back in the spotlight after Gov. Kathy Hochul’s pause on new hyperscale data centers added to a broader debate over whether the state’s energy and economic policies are pushing investment elsewhere.
Rep. Mike Lawler, R-N.Y., appeared on FOX Business’ Mornings with Maria with Cheryl Casone to discuss New York’s energy policies, business climate and continued taxpayer out-migration.
Hochul announced a statewide moratorium of up to one year on July 14 on new hyperscale data centers while New York develops a regulatory framework intended to protect utility ratepayers and address the facilities’ energy and infrastructure demands. The pause applies to state environmental permits for new hyperscale data centers, placing a hold on a project category that has become increasingly important as artificial intelligence and cloud computing drive demand for large-scale computing infrastructure.
Lawler said the move sends the wrong message to companies considering investment in New York.
"What she is saying is, don't come here. Go do your business elsewhere, which is why New York State leads the nation in out-migration," Lawler said. "It's why it is a terrible place to do business and why people are expanding in Florida and Texas and Tennessee and North Carolina and South Carolina and elsewhere. We have the highest tax burden and the worst business climate."
New York has experienced net out-migration among part-year resident tax filers every year since 2015, according to state Comptroller Thomas DiNapoli’s office. In 2024, 134,913 part-year resident filers left the state while 121,251 moved in, resulting in a net loss of 13,662 filers. The pace, however, slowed considerably from the pandemic-era surge.
Lawler also linked the state’s business challenges to its energy policies, pointing to nuclear plant closures, restrictions on natural gas and pipeline projects and electrification requirements. Those issues have become part of a larger policy debate over how New York balances reliability, affordability and the electricity needs of new industrial projects.
"If you want to address these problems, you need to have a coherent economic and energy policy," Lawler said. "And that is fundamental if New York is going to prosper moving forward."
