New York Governor Hochul Halts New Hyperscale Data Centers With Nation's First Statewide Moratorium
Summary
New York Governor Kathy Hochul signs the nation's first statewide moratorium on new hyperscale data centers, freezing state environmental permits for up to one year while a regulatory framework is developed to protect ratepayers, communities, and the environment — also targeting sales tax exemptions and requiring data centers to invest in clean energy grid infrastructure.
Key Points
- Governor Kathy Hochul signs an Executive Order imposing the nation's first statewide moratorium on new hyperscale data centers, pausing state environmental permits for up to one year to develop a regulatory framework protecting ratepayers, the environment, and communities.
- A Community Investment Framework is being created within 60 days to help localities negotiate benefits from large-scale data center deals, including infrastructure improvements, childcare investments, labor protections, and local hiring requirements.
- Governor Hochul is also pursuing legislation to repeal sales tax exemptions for massive data centers and directing the Department of Public Service to consider a New York Grid Acceleration Fund requiring data centers to invest in grid infrastructure and clean energy.