Hochul Order Puts Large Data Centers on Hold in NY

Gov. Kathy Hochul has ordered a one-year moratorium on large data centers in New York, which would be the first statewide temporary ban in the country.

Hochul said her order pauses state environmental permits for one year in order to build a regulatory framework that protects the environment and ratepayers.

“New York will lead the way in creating the strongest standards in the nation for data center development,” Hochul said in a news release.

She said that would address concerns about rising utility bills and the depletion of natural resources.

The governor’s order follows a bill passed by the State Legislature last month, which also contains a one-year moratorium. Members of the governor’s team say that bill is complicated and will take some time to work through, and Hochul feels the state needs to act sooner to address concerns.

The order would apply to data center projects that would use more than 50 megawatts of electricity. It contains exceptions for hospitals, research centers and education facilities, which typically use smaller amounts of electricity, her office said.

Earlier this year, she told state regulators to shape plans to require data centers to pay more for their energy or to provide their own. She now wants them to develop consistent environmental impact standards for the centers, a process that could take up to a year.

On Monday, a letter signed by more than 30 state legislators and several environmental and community organizations was sent to the Department of Environmental Conservation, urging it to hold any permit approvals for the data center at the STAMP Site in Genesee County until environmental and cultural review requirements are met.

The project is one of several under consideration across the state, leading to a “patchwork” of local moratoriums, her office said.

Hochul also wants to pursue legislation that would repeal sales tax exemptions for massive data centers in New York.

She also announced a new Office of Digital Innovation, Governance, Integrity, and Trust, or DIGIT, which will focus on digital safety and technological governance.

It would first look at regulating advanced AI development, including providing a way for developers to report critical safety incidents. It begins to implement the RAISE Act, legislation approved and signed last year that addresses AI transparency.

New York Public News Network | By Samuel King

Image: The Science, Technology & Advanced Manufacturing Park (STAMP) in Genesee County is seen in this file photo. (Max Schulte/WXXI News)