New York Governor Hochul Signs Nation's First Statewide Moratorium on Hyperscale Data Centers, Halting Environmental Permits for Up to One Year
Summary
New York Governor Kathy Hochul signs the nation's first statewide moratorium on hyperscale data centers, pausing environmental permits for up to one year while new regulations are developed to protect ratepayers, eliminate tech subsidies, and ensure host communities receive direct benefits.
Key Points
- Governor Kathy Hochul signs an Executive Order enacting the nation's first statewide moratorium on new hyperscale data centers, pausing state environmental permits for up to one year while a regulatory framework is developed to protect ratepayers, the environment, and local communities.
- New York will require hyperscale data centers to either generate their own energy or pay a premium to access the state grid, and all tax subsidies for data centers will be eliminated to ensure New Yorkers' tax dollars do not benefit large tech firms.
- Data centers will remain subject to local zoning and approvals, and a new Community Investment Framework will ensure host communities receive substantial benefits such as infrastructure funding and local hiring priorities when the moratorium is lifted.