Overview
- Gov. Kathy Hochul signed an executive order that immediately halts state permitting for new data centers that draw 50 megawatts or more of power for up to one year.
- The order directs the Department of Environmental Conservation and the Public Service to complete a comprehensive environmental review of energy use, water demand, pollution, noise, and community impacts.
- The pause exempts projects with finished permits and coexists with a separate legislative bill that would cover facilities above 20 megawatts which Hochul is still reviewing.
- The administration has asked regulators to design mechanisms, including a proposed Grid Acceleration Fund, to require data centers to pay for grid upgrades or supply their own power so ratepayers are not billed for new infrastructure.
- Industry groups warn the moratorium could shift jobs and investment out of New York while advocates and local leaders say the rule answers public concern over rising utility bills and environmental strain from the AI buildout.