Hochul moving forward with pause on data center development in New York
New York Governor Kathy Hochul is enacting a statewide moratorium on new data center permit approvals for projects over 50 megawatts via executive order. This one-year pause will allow state agencies to develop a comprehensive regulatory framework, including an environmental review by the Public Service Commission, to address concerns about energy, land, and water use.
New York Governor Kathleen C. Hochul is set to enact the nation's first data center moratorium today via executive order. The order will impose a one-year pause on new permit approvals for data center projects that require more than 50 megawatts of power.
During this period, state agencies will work to establish a comprehensive regulatory framework for data center developments. Additionally, Gov. Hochul has directed the state Public Service Commission (PSC) to conduct a generic environmental review to assess the impact of existing data centers on energy, land, and water resources. The moratorium will remain in effect until the PSC completes its review and establishes new regulatory standards.
Hochul emphasized that the measure is a response to concerns about data center development potentially increasing utility bills, depleting natural resources, and creating uncertainty for New Yorkers. She also previously ordered the PSC to develop regulations requiring new data centers to either pay higher power rates or utilize eco-friendly power solutions. Furthermore, Empire State Development has been tasked with creating a "Community Interest Framework" to aid local approval agencies in negotiating with data center companies. The executive order targets "hyperscale" data centers, leaving smaller facilities for essential services unaffected. This action precedes a legislative bill seeking a similar ban, with discussions between the Governor and lawmakers ongoing, and plans to repeal sales tax exemptions for some large data centers.