New York Puts Pause on New Data Centers for One Year
New York Governor Kathy Hochul has enacted a one-year moratorium on new hyperscale data centers, pausing environmental permits statewide. This measure aims to establish a comprehensive regulatory framework to address concerns about energy consumption, natural resources, and community impacts, driven by the rapid growth of AI and advanced computing.
Governor Kathy Hochul has implemented a one-year moratorium on new hyperscale data centers across New York State. This executive order, the first of its kind in the U.S., temporarily halts state environmental permits for these facilities as the state develops a comprehensive regulatory framework.
The pause is in response to the unprecedented demand for large-scale data centers, fueled by artificial intelligence and advanced computing, which raise concerns about electricity and water consumption, impacts on natural resources, and strain on the energy grid. During this period, the New York State Department of Environmental Conservation (DEC) will not issue new discretionary permits for projects not already deemed complete. The New York State Department of Public Service (DPS) has been directed to conduct a Generic Environmental Impact Statement (GEIS) to examine potential environmental effects.
In addition to the GEIS, Governor Hochul has tasked DPS with ensuring large data center operators cover the full cost of their energy use or provide their own power, preventing increased utility costs for existing customers. Empire State Development (ESD) will also create a Community Investment Framework within 60 days to help local governments negotiate benefits from data center developments. Furthermore, DPS is exploring a New York Grid Acceleration Fund, which would require data center developers to contribute to grid modernization and energy infrastructure improvements.