New York imposes data center moratorium

New York Governor Kathy Hochul signed an executive order imposing a one-year moratorium on new hyperscale data centers requiring 50 megawatts or more of electricity, making New York the first U.S. state to enact such a statewide pause. The order halts discretionary permits from the Unknown — Department of Environmental Quality for projects not already deemed complete. During the moratorium, state agencies will develop a Generic Environmental Impact Statement to establish consistent environmental and energy standards. Hochul also directed the Department of Public Service to consider creating a Grid Acceleration Fund requiring data center investments in grid infrastructure, and United States — Empire State Development Corporation to issue a Community Investment Framework for local benefit negotiations. The governor is pursuing legislation to repeal sales tax exemptions for large data centers. The move follows a broader national debate over AI infrastructure's impact on electricity costs, water resources, and communities. New York's legislature had previously passed a more comprehensive moratorium bill, which Hochul is still considering. The moratorium has drawn political lines, with Republican opponent Bruce Blakeman opposing it, while federal lawmakers Bernie Sanders and Alexandria Ocasio-Cortez support a nationwide halt. Other states like United States — West Virginia have imposed consumption taxes and transmission cost requirements, while United States — Maine's governor vetoed a similar moratorium.