New York enacts first statewide pause on large data center permits
Gov. Kathy Hochul signed a moratorium on new environmental permits for data centers above 50 megawatts while broader legislation awaits action.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
New York has become the first state to put a statewide hold on permits for some large data centers, The Verge reported. The action affects new hyperscale projects and could delay development for as long as a year.
Gov. Kathy Hochul, a Democrat, signed the moratorium, according to The Verge. Her order blocks new environmental permits for data centers larger than 50 megawatts.
Hochul’s office said the pause is intended to give the state time to develop rules aimed at protecting residents from higher energy costs and environmental effects, The Verge reported. The order applies to new permits, rather than to every data center in the state.
A higher threshold than lawmakers proposed
The 50-megawatt cutoff in Hochul’s order is higher than the threshold in a bill approved by the state Legislature, according to The Verge. Lawmakers passed a measure that would apply to data centers above 20 megawatts.
That legislation still awaits Hochul’s signature, The Verge reported. If signed, it could restrict more projects than the governor’s current order because it would cover a broader set of facilities by size.
The order creates an immediate limit on the largest new data center proposals while the separate bill remains unresolved. The Verge reported that the governor’s office framed the pause as a way to work on regulations before additional large facilities move ahead.
Energy and environmental concerns drive the pause
Data centers can require substantial electricity, and the governor’s office linked the moratorium to concerns about energy prices and environmental impacts, according to The Verge. The order’s stated purpose is to give New York time to address those issues through regulation.
The Verge reported that the moratorium can last up to one year. During that period, new qualifying projects over 50 megawatts would be blocked from receiving environmental permits.
The next decision point is whether Hochul signs the Legislature’s bill. The Verge reported that the measure has already cleared lawmakers, but the governor has not yet acted on it.
This story draws on original reporting from The Verge.