New York state regulators will not issue environmental permits for large-scale data centers for the next year, an action Governor Kathy Hochul announced Tuesday. The executive order implements a moratorium on new air permits for what are termed "hyperscale" data centers seeking to connect to the state's electrical grid.
Hochul stated that the rapid growth in demand for these facilities, driven by artificial intelligence and other high-intensity services, has raised concerns. "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," she said in a statement. She added that New York aims to establish the nation's strongest standards for data center development.
The moratorium is intended to allow the state to conduct a study and formulate new regulations for data centers. "Once the State finalizes these standards, the moratorium will be lifted, allowing new data center projects to proceed as long as they follow state, zoning code and other local approvals," Hochul noted.
Recent polling by Siena University indicated that roughly half of New York voters support the one-year moratorium, with 21% opposing it and 17% undecided. The executive action falls short of a more stringent proposal that passed the state legislature earlier this year. That proposal included requirements for prevailing wages and a significant portion of power derived from renewable sources, which faced opposition from business groups.
This move comes as the demand for data centers intensifies due to the computational needs of AI, which requires substantial amounts of electricity. The state aims to balance the economic opportunities presented by these facilities with environmental concerns and the impact on utility costs for residents.