Governor Kathy Hochul’s decision revives nuclear power plans within New York—how will this drastic about-face transform the state’s energy strategy?
At a Glance
- Governor Kathy Hochul has directed the New York Power Authority to plan for a new nuclear power plant of at least one gigawatt.
- The move is a major reversal of the state’s previous policy, which saw the Indian Point nuclear plant close in 2021.
- Surging electricity demand from the AI and data center industries is a key driver of the decision.
- The plan aligns with a federal push to expand nuclear capacity and has the backing of tech giants and labor unions.
New York’s Nuclear U-Turn
In a major energy policy reversal, New York Governor Kathy Hochul has directed the New York Power Authority (NYPA) to develop a new, large-scale nuclear power plant. The directive, announced Thursday, June 26, 2025, calls for a facility capable of generating at least one gigawatt of clean energy, with Lewiston in Western New York being considered as a potential site.
The move marks a dramatic pivot for the state, which has been grappling with the consequences of the 2021 closure of the Indian Point Energy Center, a plant that once supplied a quarter of New York City’s electricity.
The Aftermath of the Indian Point Closure
The decision to shutter Indian Point has led to a significant increase in New York’s reliance on fossil fuels, particularly natural gas, to meet its energy needs. This has resulted in higher carbon emissions and soaring utility costs, undermining the state’s climate goals.
Governor Hochul has been direct in her criticism of the previous administration’s decision, stating frankly that when Indian Point was closed, “There was no Plan B,” according to the New York Post. Her new initiative is a direct attempt to fill that gap with a reliable, carbon-free power source.
The AI Effect and Surging Power Demand
A primary driver behind the policy shift is the massive and rapidly growing demand for electricity from the technology sector, particularly for powering energy-hungry AI and data centers. In her announcement, posted on the governor’s official website, Hochul explicitly linked the need for new nuclear power to the state’s ambition to be a hub for the tech economy.
This move has support from major tech companies like Google and Microsoft, which are actively seeking 24/7 clean energy sources to power their operations. The plan is also backed by labor unions and business councils who see nuclear energy as essential for economic growth and grid stability.
A New Vision for a Nuclear Future
Governor Hochul’s initiative aligns with a broader national push to revive nuclear energy. She stressed that “21st-century nuclear design is not what it was decades ago,” aiming to quell old fears about safety with the promise of new, advanced reactor technology.
She also took aim at the slow federal permitting process that has stifled nuclear development in the U.S. for years. “Why does it take a decade? That’s why no one is doing it—the barriers are too high,” she remarked in an interview with Environment + Energy Leader. By kickstarting the process in New York, Hochul is signaling that the state is ready to embrace nuclear power as a critical component of its clean energy future.
