Gov. Kathy Hochul orders election year ‘pause’ on new large-scale data centers to power AI in NY
New York Governor Kathy Hochul announced an executive order implementing a one-year moratorium on new air permits for large-scale data centers in the state. This pause aims to address concerns about increased utility bills and the depletion of natural resources while New York develops new regulations for data center development. The moratorium will be lifted once these new standards are finalized.
New York Governor Kathy Hochul announced an executive order imposing a one-year moratorium on new air permits for "hyperscale" data centers across the state, effective Tuesday. The governor stated the "moratorium" is a necessary step to address rising utility bills, resource depletion, and uncertainty for New Yorkers due to rapid data center development driven by artificial intelligence.
During this year-long pause, New York state regulators will conduct a study and develop new standards and regulations for data center construction and operation. Governor Hochul emphasized that this initiative aims to create "the strongest standards in the nation" to ensure that the state's residents also benefit from industry growth. Once these new standards are finalized and implemented, the moratorium will be lifted, allowing new projects to proceed, provided they adhere to the updated state, local, and zoning requirements.
The executive order follows a Siena University poll indicating mixed public opinion on a one-year data center moratorium within the state. This action, however, falls short of a more comprehensive proposal previously passed by the state legislature, which included stricter requirements such as prevailing wage standards for union labor and mandates for significant renewable energy sourcing.