Kathy Hochul Signs First Statewide Moratorium on Data Centers - News of the United States
New York Governor Kathy Hochul has enacted the country's first statewide moratorium on new, large-scale data center construction. The one-year freeze, implemented via executive order, aims to allow state lawmakers to draft regulations addressing the high electricity and water demands of AI data centers. The order also mandates a "Community Investment Framework" and signals an intent to repeal sales tax exemptions for data centers.
New York Governor Kathy Hochul announced an immediate, one-year statewide moratorium on the construction of new, large-scale data centers, marking the first such executive order in the country. The governor, a Democrat, stated the freeze is necessary for state lawmakers to develop regulations that protect New York's energy and water resources, citing the increasing demands of AI-driven data centers.
The executive order specifically targets facilities planning to use more than 50 megawatts of power. It also directs the Empire State Development to create a "Community Investment Framework" to ensure local communities receive economic benefits from data centers. Furthermore, Governor Hochul intends to pursue legislation to repeal sales tax exemptions for data centers.
Hochul's executive order acts as an immediate measure, differing slightly from the "Responsible Data Center Development Act" passed by the state legislature in June, which proposes a one-year moratorium on permits for centers over 20 megawatts, a separate utility rate, energy efficiency goals, and a community benefits program. While Hochul has not yet signed the legislative bill, her executive order allows for prompt action while further regulations are under consideration. A Siena Poll indicated that 46% of respondents supported a one-year moratorium on new permits for large data centers in New York.