Gov. Kathy Hochul said the state needs safeguards to protect New Yorkers as hyperscale data centers continue to quickly expand.
New York Gov. Kathy Hochul signed an executive order on July 14 ordering a statewide moratorium on large data centers, making it the first state in the country to suspend construction of the server farms.
Hochul’s order halts the construction and expansion of data centers for up to a year while state regulators develop standards to address the energy demand, environmental impacts, and water usage of hyperscale data centers.
The statewide moratorium applies to data centers that use 50 megawatts or more of energy. The governor’s order came after the state Legislature passed a bill in June to pause construction of data centers that use 20 megawatts or more.
The debate over data centers has received national attention as some local governments have instituted moratoriums on data center construction due to concerns of increased energy costs and pollution.
Major technology firms have denied that data centers increase energy costs and have emphasized how data centers can lead to major economic benefits, such as more jobs.
In a Tuesday video message, Hochul, a Democrat, said that the development of massive data centers across the state has led to an “unprecedented demand” for energy and water resources and could cause an increase in utility costs.
“Before it goes any further, I need safeguards in place to protect New Yorkers,” she said. “That’s why I’m signing the country’s first moratorium on new hyperscale AI data centers, giving us the time to establish the nation’s strongest protections for ratepayers, our communities, and our energy grid.”
Hochul’s executive order directed the state Department of Environmental Conservation to temporarily suspend applications for the construction or expansion of data centers. The order applies to permit applications that the department had not previously determined to be complete before the governor’s order.
The executive order also directed the state Department of Public Service to examine data centers’ impact on the state’s electric grid and to develop an environmental impact statement. The Department of Environmental Conservation will be required to submit a report within one year regarding potential regulatory and policy actions needed to address concerns with large data centers across the state.
“This is a critical moment, and New York is going to take the time to get it right,” Hochul said.
