New York Governor Signs First Statewide Data Center Moratorium
New York Governor Kathy Hochul signed an executive order enacting a one-year statewide moratorium on hyperscale data center development for facilities over 50 megawatts. This pause allows the Department of Public Service to assess environmental and energy impacts, while also proposing an end to tax incentives. The action comes amid increasing national opposition and legislative pressure regarding data center construction.
New York Governor Kathy Hochul enacted a one-year statewide moratorium on hyperscale data center development through an executive order signed on Tuesday. This makes New York the first state in the nation to implement such a pause, specifically targeting facilities exceeding 50 megawatts. The order directs the state’s Department of Public Service to conduct a comprehensive assessment of the environmental and energy impacts of data centers and to develop a new generic environmental impact statement for future permitting. Governor Hochul also proposed ending all tax incentives for data centers.
The governor stated the pause is necessary to address the challenges posed by these large facilities and to create a robust framework for community protection. This move follows months of pressure, including the New York legislature’s bipartisan passage of the Responsible Data Center Development Act in early June, which awaits the governor’s signature. While Hochul’s executive order is less stringent than the proposed bill—which would apply to data centers over 20 megawatts—advocates like Democratic state senator Kristin Gonzalez lauded the action as a critical step towards ensuring development doesn't compromise water, energy grids, or utility bills.
Alex Beauchamp, northeast regional director of Food and Water Watch, an environmental group involved in crafting the original moratorium bill, highlighted the influence of the legislation on the governor's decision. He emphasized the significance of "any real moratorium" as a major advancement. The action aligns with Governor Hochul’s earlier calls for data centers to "pay their fair share" for power, and her previous signing of a cryptocurrency mining moratorium in 2022.
The article notes a nationwide surge in data center opposition, with similar moratoriums proposed in at least 13 other states. Maine passed a legislative moratorium, which Governor Janet Mills subsequently vetoed, halting a specific data center project indefinitely. Federally, Senator Bernie Sanders proposed a national moratorium in March, while Republican figures like South Carolina congresswoman Nancy Mace and Florida Governor Ron DeSantis have also voiced concerns or acted on related issues, underscoring the bipartisan nature of the movement.