New York halts hyperscale permits in first statewide moratorium
How it leans Pause growth until costs are understood · State executive
What's documented Based on the governor's executive order and press release, with on-record quotes from a Hochul staffer press call.
Gov. Kathy Hochul signed an executive order on July 14 pausing environmental permits for data centers at 50 MW and above for up to one year while the state builds a regulatory framework. The order directs the Department of Public Service to consider a New York Grid Acceleration Fund requiring data centers to invest in aging grid infrastructure, and Hochul will pursue repeal of the state's data center sales tax exemptions. The separate Responsible Data Center Development Act, passed in June, remains unsigned.
- The order immediately pauses environmental permits for projects at 50 MW or more for up to one year.
- A Generic Environmental Impact Statement will assess data center energy demand, water use and quality, and air quality.
- Within 60 days the state must issue guidance for local entities negotiating community benefits such as infrastructure improvements or direct financial support.
- The order directs the Department of Public Service to consider a New York Grid Acceleration Fund requiring data centers to invest in grid infrastructure.
- The unsigned legislative bill would apply at 20 MW, create new electric and water rate classes, and require a public hearing before any future permit.
- A Hochul staffer said the bill 'is complicated' and the executive order 'felt like the fastest way to be able to act now.'