New York is the first state to impose a moratorium on data center construction
New York Gov. Kathy Hochul signed an executive order to impose a temporary statewide moratorium on hyperscale data center construction. This order immediately halts permit approvals while the state develops regulations to measure environmental impact and address concerns over utility bills and natural resources. New York aims to create strong standards for data center development.
New York Governor Kathy Hochul has enacted a statewide moratorium on the construction of hyperscale data centers, making New York the first state to implement such a ban. The executive order, signed on Tuesday, immediately pauses the approval of permits for these large-scale facilities.
Governor Hochul stated that the moratorium is a necessary step to allow the state to develop comprehensive regulations. These new standards will focus on measuring the environmental impact of data centers, addressing concerns over rising utility bills, and protecting natural resources like water supplies. Hochul emphasized her responsibility to act given the perceived threats data center development poses to New Yorkers.
In addition to the moratorium, Governor Hochul is pursuing legislation to repeal sales tax exemptions for massive data centers across the state, aiming to ensure that economic benefits are shared with New Yorkers. The governor also highlighted public sentiment, citing a March Gallup poll showing significant opposition to AI data center construction in local communities.
During the moratorium, New York plans to develop a Generic Environmental Impact Statement to establish consistent standards for future data center development. While the executive order takes immediate effect, the state legislature had also passed a bill last month to pause data center projects, which is currently awaiting the governor's signature.