New York Gov. Kathy Hochul signs nation’s first data center moratorium
July 14 (UPI) — New York Gov. Kathy Hochul signed an executive order Tuesday putting a moratorium on building large data centers for one year.
Hochul, a Democrat, signed the executive order pausing environmental permits and said that the delay would give the state legislature time to create new laws that protect the electrical grid, environment and communities.
The order is the first statewide ban in the United States.
“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.”
The order will temporarily block the state from approving permits for data centers that use 50 or more megawatts of power. During that time, the state will create a regulatory framework for assessing how the projects affect the environment.
The ban won’t delay projects that already have the needed permits.
Hochul also called on lawmakers Tuesday to repeal sales tax exemptions for data centers.
New York has fewer data centers than some other states, such as Texas and Virginia. But some projects have sparked local battles around the state.
Though states once courted the artificial intelligence companies’ investment, sentiment has since soured. Data centers use an enormous amount of electricity and are adding a huge burden to the electrical grid.
A May Gallup poll showed that more Americans would rather live near a nuclear power plant than a data center.
In Monterey Park, Calif., voters recently blocked data center construction permanently. But in April, Maine Gov. Janet Mills vetoed legislation that blocked construction of data centers because she said it could block a project in a town that supported a local data center.
The Seminole Nation passed a complete moratorium that bans development on its tribal land.
Hochul’s team didn’t say how many proposed data centers the moratorium would affect, but Cleanview lists 25 proposed facilities in the state, and a planned 300-megawatt facility near Ithaca has seen protests and backlash from locals, The Washington Post reported.
Lawmakers in New York recently passed a bill that called for a one-year moratorium but Hochul’s action allows the governor to move quickly while she reviews the legislation, the office said.
“This is an important victory for the thousands of New Yorkers who demanded that their government take action to put a pause on hyperscale data centers,” said Mitch Jones, managing director for policy and litigation at environmental group Food & Water Watch.
