New York pauses new data center construction for one year

Gov. Kathy Hochul signed an executive order Tuesday that paused new state environmental permits for large data centers in New York for up to one year. The order covers projects that would use more than 50 megawatts of electricity, leaves permits already issued untouched, and carves out exceptions for hospitals, research centers and education facilities.

The moratorium makes New York the first state to impose a statewide halt on new data centers. The order centers on utility bills, water use, land pressure and uncertainty for residents. State officials want a consistent environmental framework before more projects advance. Albany may also revisit sales-tax exemptions that benefit massive data centers.

On June 4, lawmakers passed the Responsible Data Center Development Act by a 44-16 vote in the Senate and 102-39 in the Assembly. That bill used a lower threshold, covering new large data centers with peak demand of 20 megawatts or more, and required a statewide environmental impact report within 18 months. Earlier drafts went further, calling for a three-year moratorium and nine regional public hearings before the pause could be lifted.

More than 100 environmental, consumer, faith and community groups urged Hochul to sign the moratorium, warning that large data centers could increase energy demand, undermine grid reliability, raise utility bills, drive fossil-fuel pollution, strain water resources and create noise impacts. Opposition came from AI firms, private-sector boosters, data center developers and unions. The sharpest local fight has centered on STAMP, the Science, Technology & Advanced Manufacturing Park in Genesee County, where lawmakers and advocacy groups have pushed the state to slow permit approvals until environmental and cultural review requirements are met. Food & Water Watch counted nearly 500 small business owners backing the effort in May.