New York to impose country’s first statewide moratorium on data centers
New York State, led by Gov. Kathy Hochul, is set to impose the country's first statewide moratorium on new large data center construction for up to a year. This executive order aims to allow the state to develop new rules and standards to protect the environment and energy grid from the significant demands of these power-hungry facilities. The move also seeks to address concerns over rising utility bills and impact on natural resources.
New York Governor Kathy Hochul announced plans to sign an executive order imposing the nation's first statewide moratorium on hyperscale data centers for up to a year. This pause on state permitting for new large data centers is intended to allow state regulators to create new standards addressing environmental impacts, energy demand, and water usage.
Governor Hochul stated that the action is necessary to prevent data center development from hiking utility bills, depleting natural resources, and creating uncertainty for New Yorkers. She emphasized that New York will lead in establishing strong standards to ensure benefits for its residents. The Governor is also seeking to repeal sales tax exemptions for massive data centers in the state.
Opposition to the moratorium has emerged from tech companies and other industry backers, who argue it could harm job growth and cede ground in the AI industry to competitors like China. Nassau County Executive Bruce Blakeman, Hochul's Republican opponent, specifically opposes a statewide moratorium, advocating for local governments to make their own deals with tech companies. Senator Kirsten Gillibrand, however, expressed support, stating the moratorium is about ensuring New Yorkers have a say and receive "ironclad guarantees" regarding energy bills, water protection, and clean air.
This executive order comes after the state Legislature approved its own moratorium bill earlier this year, which Hochul's office deemed too complex. The Governor chose the executive order to ensure immediate implementation.