New York Imposes Nation’s First Statewide Moratorium on Hyperscale Data Centres
The one-year halt marks a significant shift in state policy, responding to mounting pressure from environmental and labour groups while falling short of stricter legislative proposals.
New York Governor Kathy Hochul has signed an executive order enacting a one-year pause on the development of hyperscale data centres exceeding 50 megawatts, establishing the nation’s first statewide moratorium of its kind. The order immediately halts state environmental reviews for new facilities within this threshold and directs the New York Department of Public Service to assess their environmental and energy impacts. During this period, the department is tasked with developing a new generic environmental impact statement and a general permitting process to address the complex issues associated with these massive infrastructure projects.
Hochul also proposed the elimination of all tax incentives for data centres, a move aimed at curbing the financial advantages previously offered to developers. Speaking at a press conference in New York City, the governor emphasised the necessity of regulatory intervention. “We have no choice but to address the challenges created by these massive facilities,” Hochul said, noting that the pause would provide the state with the opportunity to create a “strongest possible framework to protect our communities.”
The executive order follows intense pressure from environmental, faith, and labour groups, as well as legislative action earlier in the year. In early June, the state legislature passed the Responsible Data Center Development Act, an omnibus bill with bipartisan support that proposed stricter limits, including a moratorium on facilities over 20 megawatts. Although the governor’s current order is less aggressive than the pending legislation, advocates have welcomed the step. Democratic State Senator Kristin Gonzalez, the sponsor of the act, stated that the pause allows the state to plan effectively, ensuring that development does not come at the expense of public resources.
The moratorium does not apply to projects that already hold permits or are in the permitting pipeline prior to the order’s enactment. A representative for Hochul’s office confirmed that the governor is still reviewing the Responsible Data Center Development Act, which has remained on her desk since its passage. At the signing ceremony, Hochul personally thanked the sponsors of the act, including Gonzalez, acknowledging the influence of the legislative push on her decision.
This move places New York at the forefront of a growing national debate over data centre expansion. Opposition has surged across the United States, with at least 30 states reporting local moratoriums or pauses. While Maine became the first state to pass a legislative moratorium earlier this year, Governor Janet Mills vetoed the bill, highlighting the political complexity of the issue. The New York order reflects a broader bipartisan trend, with lawmakers from both parties introducing similar measures in response to concerns over energy grid strain and environmental impact.
