Gov. Kathy Hochul signed an executive order Tuesday temporarily banning state environmental permits for new hyperscale data centers across New York for up to one year, a pause that halts construction while state officials investigate the wider economic and environmental impacts and makes New York the first state to impose such a moratorium.
Hyperscale data centers contain thousands of computer servers, typically use 50 or more megawatts of power to operate and require a steady supply of water to keep cool.
"As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it's my responsibility to take action and lead," Hochul said in a statement, and her office said the order comes as the state is experiencing unprecedented growth in demand driven by AI and other computing operations.
The Department of Public Service will create guidelines to ensure new facilities meet consistent standards; Hochul said that work will take up to one year, and once state officials finalize the standards the ban will be lifted.
The order directs state regulators to create standards that address environmental impacts, energy demand, water usage and other factors.
Tech companies and other backers have argued moves to block construction of data centers hurt job growth for local communities and cede ground to China in the race to lead in the growing AI industry.
Earlier this year, Maine seemed poised to establish a similar moratorium, but the measure was vetoed by Gov. Janet Mills because it would have blocked a proposed data center in a town that had struggled following the closure of a local mill.
The decision carries political significance for Hochul's reelection campaign and the state's tight congressional races this fall, and the governor this year softened New York's ambitious goals to reduce greenhouse gases, citing rising energy costs for consumers.
Hochul's Republican opponent, Nassau County Executive Bruce Blakeman, opposes a statewide moratorium and says local governments should be allowed to strike deals with tech companies for data center projects that promise economic benefits; the state Legislature this year approved its own moratorium bill, but Hochul's office described that legislation as complex and said it needed additional work, so she chose an executive order that takes effect immediately once signed.
At this stage, New York has not been a destination for the biggest hyperscale data centers, the governor's office said.