New York Enacts Nation's First Statewide Data Center Moratorium
New York has become the first state in the nation to enact a moratorium on new data center construction. Governor Kathy Hochul (D) signed an executive order blocking environmental permits for data centers over 50 megawatts in capacity for up to one year.
The governor's office states the pause will give New York time to develop regulations addressing rising energy prices and environmental concerns tied to the rapidly expanding data center industry. Notably, the 50-megawatt threshold in the signed order is higher than the 20-megawatt limit originally approved by state lawmakers, with Hochul's office unable to immediately clarify the reasoning behind the adjustment.
A separate bill with potentially stricter development restrictions also awaits the governor's signature, which could further limit data center expansion in the state once enacted.