New York Gov. Kathy Hochul signs nation's first data center moratorium
New York Governor Kathy Hochul has signed an executive order establishing a one-year moratorium on new large data center construction requiring 50 or more megawatts of power. This is the nation's first statewide ban, intended to allow the state legislature time to create new laws to protect the electrical grid, environment, and communities. The order will temporarily block the state from approving new environmental permits for such facilities.
New York Governor Kathy Hochul signed an executive order enacting a one-year moratorium on the construction of large data centers, marking the nation's first statewide ban of its kind. The order, signed on Tuesday, pauses environmental permits for data centers requiring 50 or more megawatts of power, allowing the state legislature to develop new laws. Governor Hochul stated that this delay is crucial to protect the electrical grid, environment, and communities from potential negative impacts, such as increased utility bills and depletion of natural resources.
During this period, New York aims to create a robust regulatory framework to assess the environmental effects of data center projects. While the ban will not affect projects that already possess the necessary permits, it signals a shift in sentiment towards data center development due to concerns over their significant electricity consumption and strain on the power grid. Hochul also urged lawmakers to repeal sales tax exemptions for data centers. The decision follows a recent bill passed by New York lawmakers calling for a one-year moratorium, with Hochul's executive action allowing for immediate implementation while legislative review continues. Environmental groups, such as Food & Water Watch, lauded the governor's move as an important victory for New Yorkers.