New York Governor Issues Executive Order Regulating AI Data Centers
New York Governor Kathy Hochul has signed an executive order enacting a one-year moratorium on the construction of large AI data centers across the state. This move aims to allow for the development of a regulatory framework to assess the environmental impact of these facilities, addressing concerns about electricity consumption and water usage. The order also requires data centers to contribute to electrical grid improvements and plans to remove tax subsidies.
New York Governor Kathy Hochul has signed an executive order imposing a one-year moratorium on the construction of large AI data centers across the state. The unprecedented move aims to allow New York to develop a comprehensive regulatory framework to evaluate the environmental impact of these hyperscale data centers, which consume 50 or more megawatts of power.
The order, which takes effect immediately, will temporarily halt the state's approval of permits for new data centers. Additionally, it mandates that data centers contribute to a state fund for electrical grid improvements and signals Governor Hochul's intent to remove existing tax subsidies for these facilities. Hochul emphasized her responsibility to protect New Yorkers from rising utility bills, depleted natural resources, and uncertainty caused by data center development, urging tech companies to prioritize grid and water supply protection.
This action is seen as a significant signal to "Big Tech" that states can regulate data center expansion, despite a perceived lack of federal oversight. While similar moratorium proposals have been rejected in states like Maine, Michigan, and California, the Seminole Nation has also enacted a halt on development on its tribal lands in Oklahoma. Environmental advocates, including Laura Shindell of Food & Water Watch, have praised Hochul's legislation, attributing it to public pressure from residents concerned about the impact on air, water, and financial security.