New York pauses permits for large data centers for one year
Gov. Kathy Hochul says the state will study power, water and community impacts before allowing new large-scale projects.
By Sofia Marchetti · World Affairs Correspondent
3 min read
New York has halted new permits for large hyperscale data centers for one year, a move aimed at slowing projects that officials say could strain power bills, water supplies and local communities. Al Jazeera reported that New York is the first U.S. state to impose such a statewide pause.
Gov. Kathy Hochul announced the moratorium on Tuesday, saying the state needs time to create rules for the fast-growing industry. In a statement, Hochul said data center development threatens to raise utility costs, draw down natural resources and create uncertainty for residents.
Under the order, New York will stop issuing new discretionary permits for large data center projects during the one-year period. The state defines those projects as facilities that use at least 50 megawatts of power, according to Hochul’s announcement as reported by Al Jazeera.
The pause is meant to let state officials study future electricity demand and local effects before more large projects move ahead. Hochul’s office also said the state will require data center operators, rather than the broader public, to cover costs tied to their operations.
Those requirements include higher payments for electricity use, contributions to grid upgrades, supplying their own power and investing in clean energy for the facilities, according to the governor’s office. Hochul also said New York is working to end sales tax exemptions for data centers.
Data centers become an election issue
Al Jazeera reported that data center construction has become a political fight across the United States before the midterm elections. New York has 148 operating data centers, giving it the sixth-largest concentration among U.S. states, according to figures cited by Al Jazeera from Pew Research.
Progressive lawmakers in New York have pressed for a halt. State Senator Kristen Gonzalez introduced a bill last month seeking a pause on construction, Al Jazeera reported.
Hochul is seeking re-election in November. Her Republican opponent, Bruce Blakeman, has opposed a ban on data center construction, according to Al Jazeera. A recent Siena poll cited by Al Jazeera put Hochul at 52 percent support and Blakeman at 32 percent.
Polling suggests local resistance to data centers extends beyond New York. A June Reuters/Ipsos poll found that 14 percent of Americans would be comfortable with a data center being built near them, while a May Gallup poll found that 71 percent opposed data center construction in their communities, including 48 percent who strongly opposed it.
Other states weigh restrictions
Al Jazeera reported that lawmakers in at least a dozen states, including Vermont, Michigan and Virginia, have proposed moratoriums. Maine’s legislature passed a measure, but Gov. Janet Mills vetoed it in April.
The issue has also surfaced in primary campaigns. In Utah, a data center project backed by Kevin O’Leary advanced despite local opposition, according to Al Jazeera. Utah State Senate President J. Stuart Adams, who supported the project, lost his June primary, Al Jazeera reported.
Environmental and health concerns have fueled some of the opposition. Reuters reported in a new analysis that Elon Musk’s xAI Colossus 2 data center project in Tennessee installed 59 natural gas turbines without obtaining federal clean-air permits.
Reuters found that the Tennessee project would pass the threshold requiring a permit and would have an outsized effect on nearby mostly Black communities with higher respiratory disease rates than the broader population. A 2024 University of California, Riverside paper cited by Al Jazeera estimated that data centers are expected to contribute to 600,000 asthma-related symptom cases by the end of the decade.
This story draws on original reporting from Al Jazeera.