New York Gov. Kathy Hochul (D) is imposing the nation\u2019s first-ever statewide freeze on new \u201chyperscale\u201d data centers.<\/p>\n
Hochul is pausing state-level environmental permits for \u201cup to\u201d a year to give the state time to put together a framework to protect the environment, the energy grid and New Yorkers\u2019 electric bills, her office said.<\/p>\n
Hochul aides told reporters that the pause would apply to data centers that can use 50 megawatts or more of power.\u00a0<\/p>\n
\u201cAs data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it\u2019s my responsibility to take action and lead,\u201d the governor said in a written statement.\u00a0<\/p>\n
\u201cNew York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too,\u201d she added.<\/p>\n
According to the\u00a0International Energy Agency<\/a>\u00a0(IEA), data centers can vary in terms of their size and power use. The IEA says that \u201cconventional\u201d data centers can use between 10 and 25 megawatts while \u201ca hyperscale, AI-focused\u201d data center can use 100 megawatts or more.\u00a0<\/p>\n Hochul\u2019s announcement comes after the New York state legislature passed its own one-year moratorium last month. The bill would block data center permits for \u201chyperscale\u201d facilities, which it defines as those with a peak load of more than 20 megawatts.<\/p>\n It\u2019s still unclear whether the governor plans to sign or veto that bill. Hochul aides said that her office needs more time to look at the legislation and work on it with the legislature.<\/p>\n The aides said that in light of this, executive action is the fastest way to get something done.<\/p>\n It will be in place for up to a year, aides said, as the governor\u2019s office works on a regulatory framework that relates to the centers\u2019 environmental impact and impact on both water quality and quantity. The state will also seek to have the centers pay into a fund for the electric grid and will put together an investment fund framework to help localities negotiate their own agreements.\u00a0<\/p>\n Hochul is also expected to back the repeal of a sales tax exemption for large data centers, though this would require action from the state legislature.\u00a0<\/p>\n The move comes as data centers have received significant pushback. The power-hungry facilities may have significant environmental impacts, and their high levels of power use may also raise Americans\u2019 electricity bills and\u00a0destabilize the electric grid<\/a>.<\/p>\n