ALBANY — Gov. Kathy Hochul has issued an executive order placing a one-year moratorium on the permitting of hyper-scale data centers in the state.
A hyper-scale data center is defined in the order as one that uses 50 megawatts of energy or more.
This action allows the state more time to review the environmental impacts.
The move comes during a time of growing public pushback and a wave of local ordinances restricting the permitting or construction of data centers in municipalities across New York.
“New York has always been at the forefront of innovation and change, but we’ve also always guaranteed that New Yorkers benefit. 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 a statement.
“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.”
IMPACTS AND STUDIES
Earlier this year, Hochul directed the Department of Public Service to begin the Energize NY proceeding, which will require data centers to either pay more for their energy or supply their own.
As part of that proceeding, Hochul also directed DPS to develop a generic environmental impact statement to ensure “new data centers coming online are being held to consistent standards.”
According to the state, during the development of this GEIS, which will take up to a year, a moratorium will be in place and the Department of Environmental Conservation will not issue any discretionary permits not already deemed complete.
The GEIS will assess the potential environmental impacts of the construction and operation of data centers in the state, including their effect on energy demand, water use and quality, and air quality.
Once the state finalizes these standards, the moratorium will be lifted, allowing new data center projects to proceed, as long as they follow state zoning code and other local approvals.
OFFICIALS REACT
Sen. Kirsten Gillibrand (D-NY) applauded Hochul on Tuesday for taking decisive action on data center construction, which have been popping up all over the country recently.
“Today’s executive order sends a clear message: New Yorkers deserve a say in how this technology impacts their lives and communities,” Gillibrand said in a statement. “This one-year moratorium is fundamentally about trust. Right now, New Yorkers aren’t convinced these massive facilities benefit them.
“Before we move forward, our communities need ironclad guarantees that their energy bills won’t spike, their water will be protected and their air will remain clean.”
At the federal level, Gillibrand has been working on establishing “clear, reliable rules” for artificial intelligence to protect youth, seniors and consumers from AI scams and fraud while also protecting American jobs.
“New York state being the first in the nation to lead, implementing significant restrictions on these harmful data centers, is fitting,” Gillibrand said.
“Historically, we have led the way toward social, environmental and economic justice for all. And with the rapid rise of data centers and their proven harm to both the environment and health and wellbeing of surrounding communities, it is appropriate that we step in to pause their development across the state.”
Assemblymember Michael Cashman (D-Plattsburgh) welcomed Hochul’s executive order.
“This executive order does not permanently prevent developers from coming into the state. It allows the legislature time to establish meaningful guardrails to protect our citizens and the environment,” Cashman said in a statement. “New York is a land of opportunity and ensuring that we can bring in modernized technology is essential.
“That being said, we must prioritize responsible development over haphazardly introducing potentially harmful programs.”
He said the pause was “especially important” for the North Country, which is already facing high electric rates and misuse of natural resources.
“These data centers would take up a significant amount of land, water and electricity to run, limiting these resources for the residents of the North Country,” he said. “We simply cannot accept anything that will raise our electricity bills or restrict our access to clean water.
“I am proud to have worked with my colleagues across the aisle to push for legislation that elevated this issue. I am pleased that the governor has taken action. This executive order is part of the solution, but there is still work to be done.”
Eric Wood, senior environmental program coordinator for New York Public Interest Group, said the executive order is a good start but does not address the construction of data centers that use less than 50-megawatts.
“The governor’s executive order addresses many of the concerns that New Yorkers have regarding data centers, but several facilities are being proposed that use less than 50 (megawatts) of maximum grid power,” he said in a statement.
“The state must lead the way to regulate this rapidly expanding industry and consider strengthening regulations to ensure that facilities between 5 and 50 (megawatts) don’t leave the public footing the bill, the environmental harm and the nuisances that these centers present.”
Not every state and local official welcomed news.
Upstate United Executive Director Justin Wilcox wrote a letter to Hochul sharing his opposition to any moratorium on the construction or development of data centers in New York state.
“While we understand there are some valid concerns around data center development in New York state, many stemming from the state’s self-inflicted power generation shortage, executive action to enforce a moratorium on the development or construction for up to one year sends mixed signals,” Wilcox wrote.
“This will not only prolong uncertainty for companies looking to New York, but ultimately jeopardize potential investment, economic development and skilled jobs.
“While states like Virginia and Texas are far more likely to be approached by possible developers, the fact of the matter is that a statewide moratorium strips away local control and a community’s ability to decide on projects that could be pivotal to their economic growth and job creation.
“We simply cannot claim to be a state at the forefront of AI innovation if we preemptively turn down opportunities that would help ensure that to be true.”