NY data centers shelved in country's first moratorium to be signed by Hochul
New York Governor Kathy Hochul is set to sign an executive order imposing a statewide moratorium on new large data centers for up to one year. This action aims to allow the state to create rules addressing the environmental and energy grid impacts of these power-hungry facilities. It marks the country's first statewide moratorium on hyperscale data centers.
Governor Kathy Hochul is scheduled to sign an executive order on Tuesday morning, implementing a one-year statewide moratorium on new hyperscale data center construction in New York. The order will temporarily pause state permitting for these facilities, allowing state regulators to develop comprehensive standards addressing their environmental impacts, energy demands, and water usage.
Described as the first statewide moratorium of its kind in the U.S., this measure is driven by concerns over the massive power and water requirements of data centers, particularly those supporting artificial intelligence technology. Governor Hochul opted for an executive order over a previously approved but 'complex' legislative bill to ensure immediate implementation.
This decision carries political weight for Hochul's re-election campaign, as it aims to address public concerns over rising utility bills and other economic issues. While tech companies and industry advocates argue that such bans impede job growth and slow AI development, a similar moratorium in Maine was recently vetoed by Governor Janet Mills due to potential negative impacts on local economies. Hochul's Republican opponent, Nassau County Executive Bruce Blakeman, opposes the statewide ban, advocating for local governments to negotiate their own data center projects.