New York Imposes First Statewide Moratorium on Data Centers
New York Governor Kathy Hochul signed an executive order imposing the country's first statewide moratorium on large data center construction and expansion for up to a year. The order aims to address concerns regarding energy demand, environmental impacts, and water usage by hyperscale data centers. State regulators will develop standards during this period, despite opposition from tech firms and local officials who argue against the moratorium's economic impact and call for local control.
New York Governor Kathy Hochul signed an executive order on July 14, implementing the country's first statewide moratorium on large data centers. This order temporarily halts the construction and expansion of data centers drawing 20 megawatts or more for up to a year, while state regulators develop standards to manage energy demand, environmental impacts, and water usage associated with hyperscale data centers.
Governor Hochul, a Democrat, stated that the rapid development of massive data centers has created an "unprecedented demand" for energy and water, potentially increasing utility costs for New Yorkers. The executive order directs the state Department of Environmental Conservation to suspend new permit applications and the state Department of Public Service to examine data centers' impact on the electric grid and develop an environmental impact statement.
The initiative faces opposition. The Data Center Coalition, which includes major tech firms like Amazon, Google, Microsoft, and Meta, disputes claims that data centers increase energy costs, highlighting their economic benefits and job creation. St. Lawrence County legislator Rita Curran emphasized the importance of local governments in determining data center moratoriums, arguing a statewide ban could hinder local development.
Nassau County Executive Bruce Blakeman, a Republican, also opposes the statewide moratorium, advocating for local control over data center approvals based on economic benefits for communities.