New York Governor Signs One-Year Moratorium on Large Data Center Construction

Governor Kathy Hochul signed a one-year moratorium on data center construction in New York on Tuesday, the Washington Examiner reported. The order immediately stops the state’s permitting approval processes for facilities that use 50 or more megawatts of power. New York becomes the first state to enact a moratorium on data center construction.

The affected facilities are typically large-scale artificial intelligence or cloud computing buildings that require substantial electricity and water. Hochul stated that data center development threatens to hike up utility bills, deplete natural resources, and create uncertainty for New Yorkers. She said it was her responsibility to take action and lead.

The state legislature passed a stricter moratorium bill in early June. The Senate approved it by a 44-16 vote and the Assembly by a 102-39 vote. Hochul had previously described data center decisions as local matters for municipalities and land-use authorities.

She flipped her earlier anti-moratorium position and issued the executive order rather than signing the legislative bill. She is still considering the bill, according to the New York Times. Hochul said New York will lead the way in creating the strongest standards in the nation for data center development.