New York Enacts Statewide Data Center Moratorium Affecting Rockland County Projects
New York Governor Kathy Hochul has enacted the nation's first statewide moratorium on permits for new hyperscale data centers consuming at least 50 megawatts of electricity. This order aims to allow the state to conduct an environmental review and address concerns about energy demand, water use, and other impacts. Locally, projects in Orangeburg, Rockland County, are affected, including a DataBank expansion that is undergoing an extensive environmental impact statement.
New York Governor Kathy Hochul has issued an executive order imposing the nation's first statewide moratorium on discretionary permit applications for new hyperscale data centers requiring at least 50 megawatts of electricity. The order, which took effect July 14, aims to address growing concerns over the environmental and infrastructure impacts of data centers, particularly their electricity and water consumption.
The pause will last for up to one year while the state Department of Environmental Conservation conducts a comprehensive environmental review of data centers' effects on electricity demand, water resources, air quality, noise, and disadvantaged communities. State officials note a significant increase in proposed data center demand, raising concerns about potential costs for residential and business customers to fund grid improvements. Governor Hochul also plans to develop a community-investment framework for local governments and seek legislation to eliminate sales-tax exemptions for large data centers.
In Rockland County, specifically Orangeburg, where companies like DataBank and 1547 Critical Systems Realty operate, the immediate impact of the moratorium may be limited for some existing projects and expansions that fall below the 50-megawatt threshold. However, DataBank's proposed expansion in Orangeburg recently prompted the Orangetown Planning Board to require a more extensive environmental impact statement due to concerns about electricity use, air quality, noise, and proximity to Lake Tappan. The Town of Orangetown is also considering its own local data center moratorium and zoning changes. State and local actions, including potential changes to tax incentives, are expected to significantly reshape future data center development in the region.