New York Governor Kathy Hochul issued an executive order Tuesday imposing a one-year moratorium on large-scale data center construction. The move marks the first such statewide pause in the nation. Hochul cited concerns over rising electricity costs and strain on natural resources.
The order directs the state Department of Public Service to halt new permits for large data centers during the pause. The agency will also perform an environmental review and explore requirements for data centers to pay more for energy or generate their own power.
Hochul said in a statement that the development of data centers threatens to increase utility bills and create uncertainty for residents. She also asked lawmakers to end sales tax exemptions for such facilities and announced plans for a fund to support grid infrastructure and clean energy.
A broader data center moratorium bill passed by state lawmakers last month remains unsigned. Hochul additionally tasked the economic development agency with creating a negotiation framework for communities facing proposed projects.
