ALBANY, New York — Gov. Kathy Hochul plans to push legislation to eliminate a swath of state and local tax incentives for large-scale data centers next year.
Hochul imposed a moratorium for up to 12 months on state permits for data centers last week — the first statewide halt to the AI-driven projects in the country — and wants to impose further restrictions. The governor said she’s going to work with lawmakers to eliminate tax breaks for the projects, clarifying Monday that includes incentives negotiated with local economic development agencies.
“There should not be any tax breaks. These are very successful, very profitable companies,” Hochul said on Monday at an event in western New York.
Hochul’s crackdown on data centers comes amid growing opposition to the projects in communities across the country. President Donald Trump slammed Hochul’s pause on state permits for data centers as he’s embraced building out the infrastructure to support AI companies.
