Hochul signs order blocking new giant data centers in New York
New York Gov. Hochul has signed an executive order enacting a statewide moratorium on new large data centers for up to one year. This order aims to protect the environment and the state's electric grid from the high resource demands of these facilities. It halts all state permits for new large data centers and directs regulators to establish new standards for their operation.
New York Governor Kathy Hochul signed an executive order Tuesday, implementing the nation's first statewide moratorium on new large data center construction for up to a year. The order aims to protect New York's environment and electric grid from the substantial energy and water demands of these facilities, which power artificial intelligence.
The executive order immediately halts all state permits for new large data centers and mandates regulators to develop standards addressing environmental impacts, energy demand, and water usage. Governor Hochul stated that new rules would require data center operators to secure their own power and water sources or pay higher prices for existing utility access, while also eliminating tax breaks for AI data centers and mandating union labor. She emphasized the need for data centers to prioritize local community needs and address potential increases in utility bills.
While Hochul asserted that New York would remain a tech investment hub, the move faces political scrutiny. Her Republican opponent, Nassau County Executive Bruce Blakeman, expressed opposition to a statewide moratorium, advocating for local governments to have the autonomy to negotiate economic benefits with tech companies. This executive action bypasses a similar, yet stalled, moratorium bill approved by state lawmakers, which Hochul's office deemed flawed and prone to delays.