NY Governor Hochul Enacts Moratorium on Data Centers

New York State Governor Kathy Hochul signed an executive order on Tuesday imposing a year-long moratorium on the construction of new hyperscaler data centers that utilize 50 megawatts or more of power. This pause is intended to provide state agencies the opportunity to develop regulations concerning the potential adverse effects of such projects on local communities, including issues related to water usage, noise, and electricity consumption.

Hochul stated, “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.” The order also includes efforts to repeal sales tax exemptions for large data centers. This decision comes amid rising public opposition to data center construction across the U.S., with a recent poll indicating that only one in three Americans supports the rapid pace of development.

Digital Reality and NTT Global Data Centers expressed their commitment to collaborating with policymakers on responsible growth.