On Long Island, Governor Hochul Highlights First Statewide Moratorium On New Hyperscale Data Centers As Support Continues To Grow

Governor Kathy Hochul held a roundtable on Long Island to highlight her Executive Order initiating New York's first statewide moratorium on new hyperscale data centers. The order temporarily halts State environmental permits for up to one year to establish a robust regulatory framework protecting ratepayers, the environment, and the energy grid.

Governor Hochul emphasized the responsibility to prevent rising utility costs for New Yorkers due to massive data centers. She directed the Department of Public Service (DPS) to begin the Energize NY proceeding, requiring data centers to pay more for energy or supply their own, and to develop a Generic Environmental Impact Statement (GEIS) during which the moratorium will be active. The GEIS will assess environmental impacts including energy and water use, and air quality.

Additionally, Governor Hochul directed Empire State Development (ESD) to issue a Community Investment Framework (CIF) to guide localities in negotiating community benefits from data center deals. She also instructed DPS to consider a New York Grid Acceleration Fund, compelling data centers to invest in aging grid infrastructure and new clean energy supply. Furthermore, the Governor is pursuing legislation to repeal sales tax exemptions for data centers across the state.

Local leaders from Long Island, including Town of Babylon Supervisor Rich Schaffer, Town of Brookhaven Councilmember Jonathan Kornreich, and Nassau County Village Officials Association President Mayor Steven Weinberg, expressed support for the moratorium, citing concerns over water supply, electricity grid strain, and local control. They praised the Governor's collaborative approach to addressing the impacts of data center development.