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New York became the first state to enact a statewide moratorium on hyperscale data centers, halting any new development until July 2027, giving state regulators a year to create new standards regarding environmental impacts and energy demands, and marking one of the biggest political pushbacks against the AI infrastructure boom yet.\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 said Gov. Kathy Hochul in a statement.<\/p>\n
Hochul signed the executive order Tuesday morning, establishing the one-year moratorium in state environmental permitting in response to the growing public concern over rising utility costs and demand for energy and water resources. The temporary pause applies to data centers requiring 50 megawatts or more of power while the state develops a new regulatory framework. Data center projects that have already received permits are exempt from the order.<\/p>\n
Also in the order is a special carveout: The creation of the New York Grid Acceleration Fund, a proposed fund that would require data centers to invest in the state\u2019s aging grid infrastructure and energy needs. Hochul, in signing the order, directed the Department of Public Service (DPS) to consider creating the fund to help support the procurement of a clean energy supply and establish an insurance pool to protect against large loads.\u00a0<\/p>\n
Hochul tasked DPS with several projects including the start of the Energize NY proceeding where data centers pay more for their energy or supply their own, keeping energy more affordable for New Yorkers. DPS must also develop an Environmental Impact Statement (EIS) to ensure these data centers are held to \u201cconsistent statewide standards\u201d while evaluating their effects on water resources, electricity demand, land use, pollution, and other potential environmental impacts.\u00a0<\/p>\n
\u201cNew York has always been at the forefront of innovation and change but we\u2019ve also always guaranteed that New Yorkers benefit,\u201d said Hochul in her announcement of the order Tuesday morning. \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\u00a0<\/p>\n
New York\u2019s move comes as data center development accelerates nationwide and lawmakers in more than a dozen states consider similar restrictions\u2014but none have so far issued a moratorium on all construction.<\/p>\n
Maine Gov. Janet Mills agreed with a moratorium bill that passed her desk but ultimately didn\u2019t sign it since it didn\u2019t include an exemption for a $550 million data center redevelopment of a shuttered paper mill. Last month, Arizona Gov. Katie Hobbs signed a budget bill that imposes a three-year moratorium on new data center sales tax exemptions.\u00a0<\/p>\n
Smaller cities have seen these effects like in Cheyenne, Wyoming where officials said Meta\u2019s data center construction was responsible for the contamination of part of the town\u2019s recycled water system.\u00a0\u00a0<\/p>\n
In Hochul\u2019s executive order Tuesday, the governor directed Empire State Development to issue a Community Investment Framework within 60 days to help local governments negotiate benefits such as infrastructure improvements, workforce development, child care investments, and direct financial support. The framework will also include a formula to help communities figure out where to start investment negotiations.<\/p>\n
The country\u2019s first statement moratorium comes after President Donald Trump warned states against regulating AI, raising questions around how governments should capture the value created by the technology. Trump has separately pushed for a federal sovereign wealth fund, directing federal agencies to develop a plan for an investment vehicle designed to build long-term national wealth. He joins Sen. Bernie Sanders in that call.<\/p>\n
While Trump\u2019s proposal extends beyond AI, Hochul\u2019s proposed New York Grid Acceleration Fund reflects a similar idea at the state level by requiring large data centers to invest in grid upgrades and other infrastructure needs.\u00a0<\/p>\n
According to a recent Reuters\/Ipsos poll, one-in-three Americans approve of the speed of data-center construction and most oppose building one in their own community. A recent poll also showed Americans overwhelmingly would choose to live near nuclear power plants rather than a data center.\u00a0<\/p>\n
The AI boom isn\u2019t slowing, but New York\u2019s move suggests its infrastructure phase is entering a new era, where expansion comes with conditions, and resistance is becoming policy.<\/p>\n<\/div>\n
#NYS #Gov #Hochuls #data #center #moratorium #includes #model #funding #infrastructure<\/p>\n","protected":false},"excerpt":{"rendered":"
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