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Governor Hochul's justifications for New York's data center moratorium are factually wrong: prices only rise if centers draw from the shared grid rather than building their own behind-the-meter power, they're a highly land-efficient use of space, modern closed-loop systems use minimal water, and natural gas is a relatively clean power source.

Reacting to Kathy Hochul's statewide moratorium on hyperscale data centers, Sacks rebuts her stated justifications one by one, arguing data centers are efficient, low-water, and only raise prices if they aren't allowed to bring their own power. ✦ AI generated

David Sacks · All-In Podcast · 2026-07-18 · original ↗

starts at this moment · 60:24

Everything she's saying there is a false accusation on the data center. So let's just go one by one. So she's saying that they eat up all of the power. Well, yeah, if you connect to the grid without producing more power and you force data centers to compete with residential rateayers, then yeah, you could drive up utility prices. However, if you let them build behind the meter, then they bring their own power.

verbatim transcript · starts at 60:24

Transcript · around this moment

60:24address these challenges created by these massive facilities. That is why today I'll be signing the nation's first ever statewide moratorum on hyperscale data centers. >> Everything she's saying there is a false accusation uh on the data center. So let's just go one by one. So she's saying >> that they eat up all of the power. Well, yeah. I mean, look, if you connect to the grid without producing more power

60:51and you force data centers to compete with, you know, residential rateayers, then yeah, you could drive up utility prices. However, if you do what Chamas said and let them build behind the meter, then they bring their own power. And that's what the president has advocated for since the beginning of his administration is let the AI companies become power companies. So, that is the way to solve the energy problem or the

61:13utility problem. Then she's talking about, you know, eating up land. The reality is these data centers are a model of land use efficiency. We have a ton of land in this country. Obviously, you can find places where there is enough open land to build a data center. The economic impact and value of a data center relative to the land use again is one of the best ROIs there is. The

61:35supposed noise pollution that's largely made up that can be dealt with. You obviously don't want to put these things right next to a residential area, but create a little bit of distance and it's fine. The whole water consumption thing is largely a hoax. >> The the modern data centers uh recirculate the water, >> closed loop systems. >> Yeah. And I think there there was a study that showed that a typical data

61:57center uses the same amount of water as two and a half in-n-out burgers. So, in-n-out [laughter] burger chains. >> I mean, just go after the almonds if you're concerned about water, people, please. >> There's there Yeah. Or golf courses. I mean there's many, you know, there's many uses of water that are way more wasteful. So when you compare economic impact to all these different things, data centers are like honestly one of

62:19the best things we could be building as a nation. But >> and s there's all these taxes and incremental revenues. Did you see the article where I think it was in North Dakota or something where like teachers were getting like 30 and $40,000 bonuses from all the tax revenue that was coming in? There's all these upsides. >> That's right. They generate um a lot of tax revenue. They've created a

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