NY State Passes 1-Year Moratorium on Data Center Permits
The New York State Legislature has approved a one-year moratorium on new data center permits, aiming to assess environmental and energy impacts. The bill now awaits Governor Kathy Hochul's signature, with advocates supporting the pause and business groups expressing concern over economic growth.
The New York State Legislature on Thursday, June 4, approved a one-year moratorium on new data center permits for facilities requiring over 5 megawatts of power. This legislative action, if signed into law by Governor Kathy Hochul, would make New York the first state to implement such a temporary ban.
Advocates like Food & Water Watch support the moratorium, arguing it's essential to evaluate data centers' impact on local communities, utility rates, and the environment, emphasizing the need to protect the energy grid and prevent rate hikes. Conversely, business and tech groups, including the Business Council of New York and Tech:NYC, represented by president and CEO Julie Samuels, have urged Governor Hochul to veto the bill, citing potential negative impacts on economic growth and infrastructure investment.
State Senate Majority Leader Andrea Stewart-Cousins voiced support for the moratorium, viewing it as an opportunity to develop comprehensive rules for data center operations. She noted that stricter requirements, such as prevailing wage mandates and renewable energy usage targets by 2040, would be enforced after the moratorium period. Governor Hochul has yet to make a decision, having previously indicated that permitting should primarily be a local authority's responsibility. The outcome of this bill, as the legislative session concludes, is expected to set a precedent for other states considering similar measures.