Governor, PSC Take Actions on
AI, Data Center Projects
ALBANY—New York Gov. Kathy Hochul announced on Monday additional steps to advance New York’s AI safety law, the Responsible AI Safety and Education (RAISE) Act. One of the new requirements include starting in November, the state will direct large frontier AI developers to register with the state and prepare for compliance with strict regulations on transparency, safety, and incident reporting as prescribed by the RAISE Act.
These new standards require large frontier AI developers to report critical safety incidents within 72 hours. Beginning January 2027, AI companies will be required to comply with those strict standards and provide regular reporting to the state’s new Office of Digital Innovation, Governance, Integrity and Trust (DIGIT) established within the New York State Department of Financial Services (DFS). The governor also emphasized that, in the coming months, she will be exploring ways to build on the RAISE Act as part of ongoing efforts to further strengthen New York’s nation-leading AI safety laws and regulations. Marc Gilman has joined the New York State’s DIGIT Office as Deputy Director for the Responsible AI Safety and Education (RAISE) Act.
Earlier this year, Gov. Hochul signed an Executive Order to create the nation’s first moratorium on new hyperscale data centers. The governor is temporarily pausing state environmental permits for up to one year in order to build a regulatory framework that protects ratepayers, the environment, the energy grid and communities across the state. Last week, Empire State Development released the first statewide Host Community Investment Framework for Data Center Development. The Community Investment Framework provides local governments with critical guidance for any future negotiations with major tech companies and developers, a powerful tool to ensure communities are protected from exploitative data center projects and get the benefits they deserve, state officials said.
On Sept. 17, the Public Service Commission formally issued a positive declaration of potential environmental impacts associated with its review of data center and other large load interconnections under its Energize NY Development Proceeding. Pursuant to the State Environmental Quality Review Act (SEQRA), the positive declaration is the first procedural step necessary for the development of a draft Generic Environmental Impact Statement (GEIS), and it is accompanied by a Draft Scope of the GEIS that was issued for public comment today.
The Draft Scope of the GEIS adopted by the PSC will evaluate potential impacts that may result from the construction and operation of data centers and other large loads and the potential implementation of proposed large load interconnection reforms, including the development and promulgation of interconnection processes and cost allocation standards for data centers and large load customers in the state. The Draft Scope identifies the potential impacts to be evaluated, including but not limited to impacts on air; water; groundwater; human health; disadvantaged communities; agricultural resources; aesthetic resources; plants and animals; noise, odor and light; open space; and community character.
Following a public comment period ending on Oct. 20, the Public Service Commission will be able to consider what, if any, revisions are needed to the Draft Scope and then accept a Final Scope. The Final Scope will define the issues to be addressed in the GEIS.
Published: September 23, 2026.