Governor Kathy Hochul has enacted an executive order prohibiting the approval of data centers with a capacity of 50 megawatts or more in New York.
New York has taken the lead as the first state in the U.S. to implement a moratorium on the construction of large data centers. Governor Kathy Hochul recently signed an executive order that suspends the issuance of environmental permits for data centers that consume over 50 megawatts for up to a year. This pause is intended to provide state officials with the necessary time to establish guidelines that would protect the electrical grid, local ecosystems, and communities.
During a press conference, Hochul stated, “New York will lead the way in establishing the most stringent standards for data center development in the nation, ensuring that business success translates to success for New Yorkers as well.” The moratorium is effective immediately and will not impact projects that already hold the necessary permits.
This executive order is distinct from New York’s Responsible Data Center Development Act, which was recently passed by the state legislature. That legislation also proposed a one-year ban on permits for data centers, aimed at introducing energy efficiency mandates and specific benefits for local areas. Although Hochul has yet to sign this bill, it remains under consideration. She has shown support for artificial intelligence as a valuable research tool and economic driver in the past.
In response to growing public concerns about data centers, several states are exploring similar bans. Maine’s state legislature recently passed a moratorium, only to see it vetoed by Governor Janet Mills. Other states such as Washington, Wisconsin, Illinois, Pennsylvania, New Hampshire, Connecticut, and South Carolina are advancing legislation on this front, while cities like Seattle have enacted local bans.
Once a pro-business moderate, Hochul initially believed that decisions regarding data center bans should be left to local jurisdictions. However, in light of impending local elections, she opted to pursue the moratorium. “As the growth of data centers poses risks of increased utility costs, depletion of natural resources, and uncertainty for New Yorkers, I feel it is my duty to take decisive action,” she remarked.
