Overview
- Gov. Kathy Hochul signed an executive order on Tuesday, July 14 that halts state permitting for new hyperscale data centers that would use 50 megawatts or more for up to one year.
- The order directs the Department of Environmental Conservation and the state utility regulator to produce a Generic Environmental Impact Statement and hold public hearings before new large projects proceed.
- Empire State Development must issue a Community Investment Framework within 60 days and the administration has asked regulators to study options such as developer-funded grid upgrades and a Grid Acceleration Fund.
- Industry groups warned the pause could shift investment and jobs to other states while elected officials and commentators sharply disagreed over tradeoffs between local costs and economic growth.
- The move could shape rules in other states because it addresses a national problem of rising AI-related electricity and water demand and follows pressure from federal and regional grid reviews.