New York Gov. Kathy Hochul signed an executive order pausing new hyperscale data center development across the state for one year on Tuesday, July 14.
Through the moratorium, state environmental permits for data centers that can use 50 or more megawatts of power will be temporarily paused for up to a year to better understand how New York ratepayers as well as the environment, energy grid and communities will be impacted statewide, according to the governor’s office.
“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Hochul said. “New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”
Here’s what to know.
What does Hochul’s data center moratorium do?
In addition to the one-year ban, Hochul has initiated several other measures to examine the impact data centers will have on New York as a whole.
While the moratorium is in place, the state Department of Public Service (DPS) will develop a Generic Environmental Impact Statement for data centers to ensure new ones are being held to consistent standards and to assess the potential environmental impacts of the construction and operation of data centers in New York.
DPS will also consider the creation of a New York Grid Acceleration Fund, which would require data centers to invest in the state’s aging grid infrastructure and energy needs.
Empire State Development will also be required to issue Community Investment Framework within 60 days. Here’s what that entails:
Hochul is also pursuing state legislation to repeal certain tax exemptions for massive data centers across the state.
What this means for the data center moratorium bill recently passed by state lawmakers
This all comes just over a month after the state Legislature passed legislation that included a one-year ban on new data centers during their last official session day of the year.
While originally pushing for a three-year moratorium, lawmakers eventually agreed on the single-year pause, which would stop the state Department of Environmental Conservation from approving new centers to allow for a study of their potential impact as well as the establishment of a new electricity rate for large data centers, energy efficiency goals and labor standards and benefits for host communities.
Representatives from Hochul’s office said on Monday, July 13 that this piece of legislation is still on the table and the reason for this executive order is to take immediate action while the state continues to go through the nuances of the bill.
“Frankly, the bill is complicated,” a spokesperson for Hochul’s office told the USA TODAY Network. “It’s gonna take some time to work through with the Legislature, and this felt like the fastest way to be able to act now.”
The measures in the governor’s order go into effect immediately and will “last as long as it takes to complete this set of processes to put a regulatory framework in place,” which Hochul’s office believes will take up to a year, the spokesperson added.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rochester Democrat and Chronicle: New York enacts first-in-nation data center moratorium. See details
Reporting by Emily Barnes, New York State Team / Rochester Democrat and Chronicle
USA TODAY Network via Reuters Connect
By Emily Barnes, New York State Team | USA TODAY Network
