New York hits pause on massive data centers
Governor Kathy Hochul enacted a one-year pause on new hyperscale data center environmental permits in New York through an executive order. This aims to allow state agencies to develop new standards for energy demand, water use, and local impacts. The state is also considering repealing sales tax exemptions and requiring developers to contribute to grid upgrades.
Governor Kathy Hochul announced a first-in-the-nation, one-year pause on state environmental permits for new hyperscale data centers in New York. The executive order aims to protect ratepayers, the environment, the energy grid, and communities by allowing state agencies to establish new standards for data center development.
The Department of Public Service will develop a Generic Environmental Impact Statement for data centers, focusing on energy demand, water use and quality, and air quality. Concurrently, the Department of Environmental Conservation will not issue new discretionary permits until this review is complete.
Governor Hochul also directed Empire State Development to create a Community Investment Framework within 60 days to guide local governments on negotiating benefits like infrastructure upgrades and workforce development from large data center projects. Additionally, the Department of Public Service will consider a New York Grid Acceleration Fund, and the state is pursuing legislation to repeal sales tax exemptions for data centers, potentially requiring developers to contribute to grid upgrades and clean energy initiatives.