New York Governor signs first-of-its-kind moratorium on large data center projects
New York Governor Kathy Hochul signed an executive order enacting a statewide moratorium on hyperscale data center projects using over 50 megawatts of electricity. This pause on environmental permits aims to give the state time to develop a regulatory framework to protect the energy grid, environment, and ratepayers. Tech:NYC, however, expressed concern that the moratorium could deter investment in the state.
New York Governor Kathy Hochul signed an executive order imposing a statewide moratorium on large data center projects, marking a first-of-its-kind action in the United States. As reported by Samuel King of the New York Public News Network, the executive order will halt the issuance of state environmental permits for hyperscale data centers, specifically those consuming more than 50 megawatts of electricity.
Governor Hochul stated that this pause is necessary to allow the state to develop a comprehensive regulatory framework. The goal of this framework is to establish "guardrails" that will mitigate risks to New York's energy grid, minimize land disruption, control noise pollution, and safeguard natural resources, particularly the state's water supply, while also protecting utility ratepayers.
In response, Tech:NYC, an organization representing New York City's technology industry, acknowledged that some aspects of Governor Hochul's order are reasonable. However, the group voiced concerns that the moratorium could lead to a diversion of essential investment away from New York, thereby negatively impacting the state's economy.