New York Gov. Kathy Hochul, on Tuesday, reportedly ordered the nation’s first statewide pause on new hyperscale data centers, temporarily halting environmental permits for up to a year.
The freeze is intended to give the state time to develop rules that protect the environment, the power grid, and consumers’ electricity costs. Hochul announced a pause on approving large data centers that consume 50 megawatts or more of power, citing concerns over rising utility bills, strain on natural resources, and uncertainty for residents, reported The Hill, citing a statement from the Governor’s office.
She said the state would use the pause to develop what she called the nation’s “strongest standards” for future data center development.
Hochul is expected to sign an executive order for the same on Tuesday, while her administration continues reviewing related legislation. The temporary measures, which could remain in place for up to a year, aim to address environmental impacts, establish a regulatory framework, and require large data centers to contribute to the electric grid.
The New York Governor is also expected to support ending a sales tax exemption for large data centers, subject to legislative approval.
