New York temporarily bans construction on new data centers
Governor Kathy Hochul has signed an executive order enacting a one-year statewide pause on building new hyperscale data centers in New York. This temporary ban prevents state lawmakers from approving environmental permits for these facilities. The pause will allow the state to develop a framework with consistent standards to address concerns about utility bills, natural resource depletion, and environmental impact.
Governor Kathy Hochul signed an executive order on Tuesday, implementing a one-year temporary ban on the construction of new hyperscale data centers across New York State. The order prohibits state lawmakers from approving environmental permits for these facilities, which typically house thousands of servers and consume significant amounts of power (50 or more megawatts) and water for cooling.
Governor Hochul stated that the pause is necessary to allow time for the creation of a comprehensive framework to protect residents and the environment, citing concerns that data center development could increase utility bills and deplete natural resources. This move makes New York the first state to enact a statewide moratorium on such centers. The governor's office noted that the ban comes amid unprecedented growth in demand for data center development, driven by AI and other computing operations.
The Department of Public Service is tasked with developing guidelines and consistent standards for data centers, a process expected to take up to a year. Once these standards are finalized, the construction ban will be lifted, ensuring that future developments align with the state's goals for environmental protection and economic benefit for New Yorkers.