Gov. Hochul signs bill, pausing permits for new data centers
New York Governor Kathy Hochul signed a bill enacting the nation's first statewide moratorium on new hyperscale data centers, pausing environmental permits for up to one year. This temporary measure aims to allow the state to develop a comprehensive regulatory framework to address environmental and economic concerns, including energy and water strain. The state plans to finalize these standards within the year, after which the moratorium will be lifted.
New York Governor Kathy Hochul has signed a bill implementing a first-of-its-kind statewide moratorium on new hyperscale data centers. The legislation imposes a one-year pause on state environmental permits required for construction, aiming to provide time for the state to develop a comprehensive regulatory framework.
According to Governor Hochul's office, the increasing construction and operation of data centers nationwide are straining energy and water supplies, leading to concerns about higher utility rates and depletion of natural resources. The moratorium is intended to protect ratepayers, environmental resources, and the state's energy grid while new standards are established.
Earlier in the year, Hochul had directed the Department of Public Service to mandate that data centers either pay more for energy or supply their own power. The state will also assess the environmental impacts, including energy demand, water use, and air quality, before lifting the moratorium. Once the regulatory framework is finalized, new data center projects will be allowed to proceed, subject to state, local zoning, and other approvals. Communities that welcome data center development are also expected to receive financial benefits.