Hochul halts new data center approvals via executive order
New York Governor Kathy Hochul has signed an executive order imposing a one-year pause on the approval of new hyperscale data centers. This decision addresses concerns about their environmental impact, strain on the power grid, and water resources. State agencies will study these impacts during the moratorium period.
New York Governor Kathy Hochul has issued an executive order placing a one-year pause on the approval of new hyperscale data centers across the state. The order mandates the Department of Public Service and the Department of Environmental Conservation to study the environmental and economic impacts of these facilities until July 2027. This moratorium, however, does not affect projects that have already received state approval or have pending permits.
Governor Hochul stated her refusal to let the costs of increased utility demands be passed on to New Yorkers, emphasizing the need for a framework to protect communities, reduce energy grid risk, minimize land disruption, noise pollution, and safeguard natural resources, particularly water supply. New York State Senator Kristin Gonzalez acknowledged the benefits of hyperscale data centers but underscored the unprecedented challenges they pose to the energy grid and environment, justifying the urgency of the executive order.
The decision has drawn criticism from industry advocates. Megan Jenkins of the Pacific Legal Foundation argued that the moratorium sends the wrong message and overlooks industry advances in self-sufficient energy capacity. The president of the Data Center Coalition echoed this sentiment, telling PIX11 News that the moratorium disregards data centers' role in attracting supply chain investments and jobs, potentially limiting job opportunities for various building trades. The current development pipeline in New York state reportedly seeks about 9,000 megawatts of new electricity, representing approximately one-third of the state's peak demand.