Gov. Kathy Hochul has put a one-year kibosh on building massive data centers across New York as regulators dial in their environmental impacts and power use.
The governor Tuesday ordered a moratorium on large data centers to allow the state to develop an environmental assessment and set consistent standards while establishing rules for how they can provide their own energy, Newsday reported.
The hyperscale facilities that power artificial intelligence have received pushback from residents while communities grapple with their potential environmental and financial impacts.
The one-year suspension applies to data centers exceeding 50 megawatts that haven’t received permits to start construction. The executive order won’t apply to hospitals, research centers and schools.
“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.
Her announcement comes on the heels of a bill passed by state lawmakers last month that would have also put a one-year delay on building new large data centers. The bill would have also required developers to draw at least a third of their power from renewable sources.
The governor decided to issue the executive order to more quickly meet residents’ concerns, according to her office. The order doesn’t preclude Hochul from signing the new legislation.
The state, meanwhile, is looking to squeeze more benefits from large data center development.
Hochul has directed the Department of Public Service to consider creating a fund to require data center developers to invest in the state’s power grid and mitigate the increased demand. The governor ordered the department this year to set rules requiring data centers to either produce their own power or transport it to the site.
She said she’d pursue legislation next year to strip data centers across the state of sales tax exemptions.
Meanwhile, Empire State Development is setting up a community investment framework for local governments that want to cut community benefit deals with data center developers, according to Newsday.
Bruce Blakeman, the Republican running against Hochul for governor, said last month he would oppose a moratorium on data centers because the approach was too broad. Instead, he said if a community wanted a data center, it should be allowed to pursue it.
Lawmakers in 15 states are considering bans on data centers, but no measure has gone into effect as of July 1, according to the National Conference of State Legislatures.
– Dana Bartholomew
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