technology
New York Governor Imposes One-Year Pause on Large Data-Center Construction
Governor Kathy Hochul imposed an immediate pause on construction of data centers drawing 50 megawatts or more. The measure is the first statewide ban of its kind and will remain until consistent environmental standards are set.
Jul 15, 5:50 PM·1m read2 sources
Protection pauseIndustry setback
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New York Governor Kathy Hochul announced a one-year moratorium on Tuesday covering construction of data centers that use 50 megawatts or more. The pause took effect immediately and blocks new projects until the state completes a Generic Environmental Impact Statement examining construction and operating effects.
Hochul said data center development threatens to raise utility bills, deplete natural resources, and create uncertainty for residents.
She directed state officials to produce the environmental review and stated that New York will set the strongest standards in the nation. New York lawmakers had already passed a separate moratorium bill before the announcement, though Hochul has not yet received it for signature.
In February she outlined a plan requiring data centers to pay their share of grid upgrades and indicated she intends to repeal sales tax exemptions for the facilities.
New York maintains fewer data centers than Virginia or Texas yet faced a backlog of projects awaiting grid connection approvals. Researchers reported that protests have blocked or delayed more than $130 billion in data center projects nationwide so far this year.
