New York outlaws big new data centers for 1 year
New York has temporarily banned approvals for large data centers using 50 or more megawatts of power for up to a year, following an executive order signed by Governor Kathy Hochul. This moratorium aims to give regulators time to develop rules addressing potential impacts on local electricity bills, water supply, and noise pollution. The governor is also considering signing a stricter moratorium recently passed by the state legislature.
New York Governor Kathy Hochul signed an executive order enacting a temporary ban on permits for new, large data centers that consume 50 or more megawatts of power. This statewide moratorium, which allows previously approved projects to continue, is set to last for up to a year.
The purpose of the pause is to provide regulators with time to study and develop rules to mitigate potential negative impacts of these facilities, specifically on local electricity costs, water resources, and noise pollution. Governor Hochul has also indicated plans to require large data centers to generate their own power or pay additional fees for grid access, alongside investments in grid infrastructure and the removal of tax subsidies.
Separately, Governor Hochul is currently evaluating a stricter moratorium passed by the state legislature, weighing whether to sign it into law. This move positions New York as the first state to implement such a temporary ban, amid broader national discussions on data center energy consumption and local pushback against new developments.