Governor Hochul Highlights First Statewide Moratorium On New Hyperscale Data Centers As Support Continues To Grow
New York Governor Kathy Hochul has signed an executive order enacting the first statewide moratorium on new hyperscale data centers. This one-year pause on State environmental permits allows New York to develop a comprehensive regulatory framework. The initiative aims to protect ratepayers, the environment, and the energy grid while ensuring responsible data center development.
Governor Kathy Hochul announced a groundbreaking executive order creating the nation's first statewide moratorium on new hyperscale data centers in New York. The order temporarily halts State environmental permits for up to one year to establish a leading regulatory framework aimed at protecting ratepayers, the environment, energy grid, and local communities.
Governor Hochul stated that progress should not come at the expense of higher utility bills, depleted water supplies, or noise pollution. She emphasized the state's commitment to involving New Yorkers and organized labor in shaping the future of data center development. State Senator Kristen Gonzalez, sponsor of the Responsible Data Center Development Act, and Assemblymember Didi Barrett both expressed support for the moratorium, highlighting concerns over water pollution, energy grid strain, and rising utility bills.
As part of this initiative, Governor Hochul has directed the Department of Public Service (DPS) to develop a Generic Environmental Impact Statement (GEIS) for data centers, ensuring consistent standards for new projects. During this GEIS development, the Department of Environmental Conservation (DEC) will not issue new discretionary permits. Additionally, Empire State Development (ESD) will issue a Community Investment Framework (CIF) to guide localities in negotiating community benefits, prioritizing organized labor and local hiring. DPS will also explore a New York Grid Acceleration Fund to mandate data center investments in grid infrastructure and clean energy, and the Governor is pursuing legislation to repeal sales tax exemptions for large data centers.