Hochul Order Creates First Statewide Moratorium on Hyperscale Data Centers

New York Gov. Kathy Hochul on Tuesday signed an executive order to create the nation’s first state-level moratorium on new hyperscale data centers. The order temporarily pauses state environmental permits for up to one year in order to build a regulatory framework that protects ratepayers, the environment, the energy grid and communities, Hochul’s office said.

“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. “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 New York Building Congress’ president and CEO, Carlo A. Scissura, issued a statement opposing the order. “This data center moratorium will damage our state’s economy, its workforce, and our competitive standing in the industries of tomorrow: plain and simple,” he said. “A blanket moratorium is the wrong tool for a real-world problem that demands careful consideration.”

Earlier this year, the Maine Legislature passed what would have been the first statewide moratorium on data center development. However, Gov. Janet Mills vetoed the measure.