Hochul order puts large data centers on hold in NY
Governor Kathy Hochul has issued a one-year moratorium on state environmental permits for large data centers in New York. This order aims to allow time to develop a new regulatory framework that addresses concerns about rising utility bills and the depletion of natural resources. The moratorium applies to projects requiring over 50 megawatts of electricity.
New York Governor Kathy Hochul has ordered a one-year moratorium on state environmental permits for large data centers, marking the nation's first statewide temporary ban of its kind. The order is intended to facilitate the creation of a new regulatory framework that protects both the environment and ratepayers by addressing concerns over rising utility bills and natural resource depletion. This action follows a similar bill passed by the State Legislature last month, though the governor's office stated that the legislative bill is complex and requires more time.
The moratorium targets data center projects exceeding 50 megawatts of electricity consumption, with exceptions for hospitals, research centers, and education facilities. Earlier this year, Governor Hochul directed state regulators to develop plans requiring data centers to either pay more for energy or provide their own power, and she now seeks consistent environmental impact standards for these facilities. The governor also intends to pursue legislation to repeal sales tax exemptions for large data centers in New York. Additionally, she announced the creation of the Office of Digital Innovation, Governance, Integrity, and Trust (DIGIT) to focus on digital safety and technological governance, starting with advanced AI development regulation.