New York became the first state to impose a data center construction moratorium after Democratic Governor Kathy Hochul announced a one-year pause on Tuesday. The state-wide ban applies to facilities using 50 megawatts or more and will remain until New York establishes consistent standards for responsible data center development. The move follows mounting public concerns over pollution, rising energy costs, and water supply risks, with more than $130 billion in data center projects blocked or delayed by protests this year across the United States.
New York Directs Development of Environmental Impact Statement
On Tuesday, Hochul directed state officials to develop a Generic Environmental Impact Statement (GEIS) to ensure new data centers meet consistent standards, Reuters reported. The GEIS will examine potential environmental impacts of data center construction and operation in the state. Officials told Reuters the moratorium applies to data centers using 50 megawatts or more and will not be lifted until the state completes the environmental review process.
New York has fewer data centers than states like Virginia and Texas but had a long queue of projects waiting for approval to connect to the state's energy grid, Reuters noted. Some projects had sparked backlash, The Washington Post reported.
Federal Lawmakers Introduce Competing Data Center Legislation
Bernie Sanders (I-Vt.) and Alexandria Ocasio-Cortez (D-N.Y.) have introduced legislation seeking a possible nationwide construction ban on data centers. Donald Trump claimed such moratoriums would threaten America's lead in the AI race, and Republicans are seemingly unlikely to embrace the federal legislation.
Researchers last month found that more than $130 billion in data center projects have been blocked or delayed by protests so far this year. At every level, pressure is increasing on elected officials to consider residents' fears before signing contracts for data center construction.
State Bill Awaits Governor's Signature
New York lawmakers had already passed a bill to impose a data center moratorium in response to public backlash. Hochul has yet to receive the bill for signing, Reuters reported. Her office described the law as "complicated" and said it would take some "time to work through" once it reaches her desk.
FAQ
What did Governor Hochul announce on Tuesday regarding data centers?
Governor Kathy Hochul announced a one-year moratorium on construction of data centers using 50 megawatts or more. The pause will remain in effect until New York develops consistent standards for responsible data center development through a Generic Environmental Impact Statement.
Why have more than $130 billion in data center projects been blocked this year?
Researchers found that protests over pollution concerns, rising energy costs, and diminishing water supplies have blocked or delayed more than $130 billion in data center projects so far this year across the United States.
