New York Gov. Kathy Hochul signs nation’s first data center moratorium

New York Governor Kathy Hochul has signed an executive order instituting a one-year moratorium on the construction of large data centers across the state. The order, which takes immediate effect, pauses the approval of environmental permits for data centers requiring 50 or more megawatts of power. Governor Hochul stated that this delay will provide the state legislature with time to develop new laws aimed at protecting New York's electrical grid, environment, and local communities.

The governor emphasized that New York intends to establish the nation's strongest standards for data center development, ensuring that state residents benefit from such projects. She also called for the repeal of sales tax exemptions for data centers. While New York has fewer data centers compared to states like Texas and Virginia, several projects have faced local opposition. The moratorium does not impact projects that have already secured the necessary permits.

This executive action follows a recent bill passed by New York lawmakers calling for a similar one-year moratorium. Mitch Jones, managing director for policy and litigation at Food & Water Watch, lauded the governor's decision as a significant victory for New Yorkers advocating for a pause on hyperscale data centers.