NY becomes first state to impose data center moratorium

New York Governor Kathy Hochul has enacted the nation's first statewide moratorium on large-scale data centers, signing an executive order that halts state permitting for up to a year. The measure aims to allow state regulators to develop standards addressing environmental impacts, energy demand, and water usage, citing concerns over rising utility bills and ecological risks associated with power-hungry AI facilities. Governor Hochul, speaking at a signing ceremony in Brooklyn, emphasized the need to balance progress with environmental protection and stable utility costs.

The executive order has immediate implications for a proposed nearly $20 billion data center by Stream Data Centers in the Town of Alabama, Genesee County. While the Governor's order appears to exclude local government approvals from its scope, the project faces significant local opposition. Alabama residents have expressed concerns, with one advocate stating, "Maybe we've won a baby step in Alabama, but we can't give up now."

Adding to the project's challenges, the Tonawanda Seneca Nation and the Sierra Club filed a lawsuit on Monday, challenging an incentive zoning agreement (IZA) between the Town of Alabama and the Genesee County Economic Development Center (GCEDC). Opponents argue the IZA restricts future local decision-making. Town Supervisor Robert Crosson stated the town had not yet been formally served the lawsuit. The Stream Data Centers project is still awaiting final environmental and site plan approval from the Planning Board, with its next meeting scheduled for August 3rd. A protest against the data center is also planned in Batavia for Saturday.