Letter from M. Stanley Bugge

Let’s Proceed with AI the Right Way

AI innovation is vital, but it cannot override the physical limitations of our power grid and water resources. Governor Kathy Hochul’s Executive Order No. 62, establishing a moratorium on new hyperscale data centers, is a necessary “time-out” to prevent our infrastructure from being overwhelmed.

The core issue is accountability. Hyperscale data centers place staggering demands on our electric and water utilities. When these facilities force billions in infrastructure upgrades—like substations or treatment plants—the costs should not be “socialized” onto families and small businesses through higher utility bills or taxpayer-funded subsidies.

A temporary pause allows regulators to assess these impacts, but it must lead to a permanent policy: Data center developers must pay the full, direct cost of the infrastructure their projects consume.

This is not anti-business; it is basic free market accountability. By ensuring companies bear the true cost of their operations, New York can align with other states like California, Utah, and Ohio who already require developer-funded infrastructure models.

New York should welcome innovation, but not at the expense of energy affordability. We should urge state leaders to use this moratorium to establish a permanent framework: Let businesses compete, but ensure they pay their own way.

M. Stanley Bugge
Otego