New York becomes first US state to impose a data center moratorium
New York became the first state in the U.S. to impose a statewide moratorium on new data centers today after Governor Kathy Hochul signed an executive order pausing state environmental permits for large facilities for up to a year.
Executive Order No. 62 took effect on signing and covers hyperscale data centers that draw 50 megawatts of power or more. While it is in force, the state Department of Environmental Conservation will not issue discretionary permits that have not already been deemed complete.
Hochul cast the pause as a response to the computing demand unleashed by artificial intelligence, which she said threatens to push up electricity bills and drain the state’s energy and water supplies. Proposals for large facilities have piled up across New York, each one capable of consuming enormous amounts of power and water to run and cool thousands of servers.
“As data center development threatens to hike up utility bills, deplete our natural resources and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said in announcing the order. “New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”
