New York to impose the country’s first statewide moratorium on data centers
New York is set to impose the country's first statewide moratorium on new large data centers for up to a year. Governor Kathy Hochul will sign an executive order to pause state permitting and direct regulators to create standards addressing environmental impacts, energy demand, and water usage. This move aims to protect the environment and energy grid from the power-hungry facilities.
New York Governor Kathy Hochul is set to sign an executive order imposing the country's first statewide moratorium on hyperscale data centers. The order will halt state permitting for new large data centers for up to a year, during which state regulators will develop standards to address environmental impacts, energy demand, and water usage.
Governor Hochul stated the action is necessary to prevent data center development from hiking utility bills, depleting natural resources, and creating uncertainty for New Yorkers. This decision carries political weight, particularly in light of Hochul's reelection campaign, as Democrats address affordability concerns like high utility bills.
Tech companies and their proponents argue such moratoriums hinder job growth and could cede ground to China in the AI industry. While Maine's similar moratorium measure was vetoed earlier this year by Governor Janet Mills, and other states' proposals have stalled, New York is moving forward with an executive order after the state Legislature's own moratorium bill was deemed too complex by the governor's office. New York has not historically been a major destination for hyperscale data centers.