New York enacts country’s first statewide moratorium on data centers

There will be a one-year pause on building new data centers across New York due to an executive order signed by Gov. Kathy Hochul on Tuesday.

The order bans state lawmakers from approving environmental permits for hyperscale data centers. Hochul said the pause will give lawmakers time to create a framework to protect residents and the environment. 

New York will be the first state in the country to enact a statewide moratorium on the centers.  

Hyperscale data centers contain thousands of computer servers and typically use 50 or more megawatts of power to operate. They also require a steady supply of water to keep cool.

“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.

The order comes as the state is experiencing unprecedented growth in the demand for data center development driven by AI and other computing operations, according to the governor’s office.

“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,” Hochul said in a statement. 

The Department of Public Service will create the guidelines for centers to ensure new facilities meet consistent standards. Hochul said this will take up to a year, prompting the moratorium.

Once state officials finalize the standards, the ban will be lifted.