New York to enact nation's first statewide data center moratorium after Hochul order
Governor Kathy Hochul has ordered a one-year statewide moratorium on large data centers in New York, the first of its kind in the US. This order pauses state environmental permits for data centers consuming over 50 megawatts of electricity, aiming to develop a regulatory framework to protect the environment and ratepayers from rising utility costs. The action follows a similar bill passed by the State Legislature, with Hochul's order intended to accelerate the process.
Governor Kathy Hochul has enacted the nation's first statewide temporary ban on large data centers in New York, issuing an executive order for a one-year moratorium on state environmental permits. This pause targets data center projects that would consume over 50 megawatts of electricity, with exceptions for essential services like hospitals and research centers. The governor stated her intention is to develop a robust regulatory framework to safeguard the environment and manage utility costs for ratepayers, addressing concerns about rising energy bills and natural resource depletion.
Hochul's order comes after the State Legislature passed a similar one-year moratorium bill, which her administration deems too complex for immediate implementation. She emphasized the need for swift action to establish consistent environmental impact standards for data centers, a process anticipated to take up to a year. Additionally, the governor is pursuing legislation to revoke sales tax exemptions for large data centers and announced the formation of a new Office of Digital Innovation, Governance, Integrity, and Trust (DIGIT) to focus on digital safety and technological governance, starting with AI regulation. The action follows a letter from over 30 state legislators and environmental groups urging the Department of Environmental Conservation to halt permits for a data center at the STAMP site in Genesee County.