NY Puts 1-Year Pause on Data Centers
New York Governor Kathy Hochul has enacted a one-year moratorium on new hyperscale data center construction. This pause is to allow the state to develop regulations addressing rate hikes, environmental impacts, and power grid strain. The state will also work on a Generic Environmental Impact Statement and a Community Investment Framework.
Governor Kathy Hochul signed an Executive Order establishing a one-year moratorium on new hyperscale data center construction in New York State. This pause on state environmental permits aims to allow the Department of Public Service (DPS) to develop new regulations concerning energy costs, environmental protection, and power grid stability. The initiative includes the development of a Generic Environmental Impact Statement (GEIS) to standardize assessments of data centers' impact on energy demand, water use, and air quality, after which the moratorium will be lifted for projects complying with the new standards.
The governor also directed Empire State Development (ESD) to create a Community Investment Framework within 60 days. This framework will guide local entities in negotiating community benefits from large-scale data center deals, emphasizing infrastructure improvements, childcare investments, direct financial support, and promoting organized labor standards, prevailing wages, local hiring, and apprenticeships. Additionally, DPS is tasked with exploring the creation of a New York Grid Acceleration Fund to require data centers to invest in grid infrastructure and potentially fund their own clean electric generation to ensure responsible development for all New Yorkers.