New York imposes nation’s first one-year ban on new large data centers
New York has become the first state to impose a one-year moratorium on the construction of new large data centers (50 megawatts or more) due to concerns over their immense power consumption, environmental impacts, and rising energy costs. Governor Kathy Hochul announced the pause to allow officials to develop protective measures for the environment and New Yorkers. The state legislature also passed a similar bill for hyperscale data centers over 20 megawatts.
New York Governor Kathy Hochul announced a one-year temporary moratorium on the construction of new large data centers consuming 50 megawatts or more of power. This makes New York the first state in the nation to impose such a ban, driven by concerns over the immense power demands of artificial intelligence tools and their impact on the state's electricity grid, environmental footprint, and rising energy costs for residents. The pause aims to provide state officials with time to develop measures protecting New Yorkers and the environment.
The governor's order follows the New York State legislature's recent passage of the Responsible Data Center Development Act, which proposes a one-year pause on permits for hyperscale data centers exceeding 20 megawatts. During the moratorium, the Department of Environmental Conservation will not issue discretionary permits for projects with incomplete applications. Governor Hochul has also directed state officials to prepare a Generic Environmental Impact Statement to establish consistent standards for future data centers across New York.
This action comes amidst nationwide community pushback against data center projects and similar legislative efforts in other states, though none have gone as far as New York. For example, the Seminole Nation approved a moratorium, while Maine's attempted statewide moratorium was vetoed. Critics, like Carlo A. Scissura, president and CEO of the New York Building Congress, argue the moratorium is an inappropriate tool, advocating for targeted regulation instead and disputing claims of higher energy costs for New Yorkers. Earlier this year, Hochul had already introduced requirements for data centers to generate their own power or pay a premium, with those rules set to take effect within the next year.