On July 14, New York Governor Kathy Hochul signed an executive order establishing the nation’s first statewide moratorium on hyperscale data center development. Hochul’s action comes in response to growing concerns about the potential impacts of data centers on energy demand, water use and quality, air quality, and noise levels. The order pauses environmental permitting for new data centers that would consume at least 50 megawatts of energy.
In consultation with the New York Department of Environmental Conservation (DEC) and in accordance with the requirements of the State Environmental Quality Review Act, the state’s Department of Public Service is directed to prepare a Generic Environmental Impact Statement assessing the potential environmental impacts of data center construction and operation. While that process unfolds, DEC is directed to hold in abeyance all applications for any discretionary permit, approval, license, or similar permission for the construction or expansion of a data center that are pending or deemed incomplete by DEC prior to the date of the order.
Independent of the permitting moratorium, DEC must also assess whether its water withdrawal program regulations, policies, or guidance adequately capture the demands of large users including data centers, and deliver a report on findings and recommended regulatory or policy actions within 12 months of the order.
The order also includes provisions aimed at bolstering community investment from data center operators and resolving issues related to grid interconnection, reliability, and cost allocation.
