New York Halts Hyperscale Data Center Construction Permits

New York has become the first state to issue a moratorium on hyperscale data center permits. Governor Kathy Hochul is set to sign an executive order that will halt construction permits for these facilities, according to multiple media reports.

The order will apply to "so-called hyperscale" data centers, defined as locations using at least 50 megawatts of power. The term is often associated with large tech companies like Amazon, Google, and Meta, which have been rapidly expanding their AI infrastructure.

The moratorium takes effect immediately and will last for up to one year. During this period, state officials are tasked with developing a Generic Environmental Impact Statement (GEIS). This assessment will focus on establishing uniform environmental standards for new data centers and evaluating their broader impact.

"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 stated. The governor plans to lift the moratorium once the GEIS is completed. The move follows recent legislative action, including a bill passed by the state legislature that would impose a one-year moratorium on permits for data centers exceeding 20 megawatts.