New York Governor Kathy Hochul (D) has announced the country’s first statewide freeze on new hyperscale data center construction, pausing environmental permits for up to one year while the state develops comprehensive regulatory standards.
The Hill reports that Gov. Hochul is halting state-level environmental permits to allow New York time to establish a framework designed to protect the environment, the energy grid, and residents’ electricity costs. The pause will apply specifically to data centers capable of using 50 megawatts or more of power, according to officials from the governor’s office.
“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. “New 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.”
The International Energy Agency notes that data centers vary significantly in size and power consumption. Conventional data centers typically use between 10 and 25 megawatts, while hyperscale, AI-focused facilities can consume 100 megawatts or more of electricity.
The governor’s action follows recent legislative efforts by the New York state legislature, which passed its own one-year moratorium last month. That bill would block permits for hyperscale facilities defined as those with a peak load exceeding 20 megawatts. Hochul’s office has not yet indicated whether she will sign or veto the legislative measure, with aides stating that more time is needed to review the legislation and collaborate with lawmakers. Given this timeline, executive action represents the fastest path to implementation.
The moratorium will remain in effect for up to one year while the governor’s office develops a regulatory framework addressing the environmental impact of data centers and their effects on water quality and quantity. The state also plans to require data centers to contribute to a fund supporting the electric grid and will establish an investment fund framework to assist local communities in negotiating their own agreements with developers.
Additionally, Hochul is expected to support repealing a sales tax exemption currently available to large data centers, though this change would require approval from the state legislature.
The decision reflects growing concerns nationwide about the rapid expansion of data centers. These power-intensive facilities have faced criticism for their potentially significant environmental impacts, and their substantial electricity demands may lead to higher utility bills for consumers and potential instability in the electric grid.
While several municipalities across the country have implemented local freezes on data center construction, no state had taken such action at the statewide level until now. Maine’s legislature recently passed a similar moratorium, but Governor Janet Mills vetoed the measure because it failed to include an exemption for a project already in progress.
Breitbart News previously reported that AI data center opponents have blocked or delayed projects worth $130 billion so far this year:
At least 75 projects worth about $130 billion have been blocked or delayed from January through March across the country as a result of data center opponents, according to a Data Center Watch study obtained by NBC News.
The authors of the study further noted that this hindering of AI data centers is the most on record in a three-month period since they began tracking the matter in 2023.
“The quarter reflected a structural shift rather than a cyclical spike: communities have internalized an opposition playbook, legislative sessions introduced formal regulatory uncertainty, and the number of active opposition groups more than doubled to 833 across 49 states,” the study read.
The placement of AI data centers has emerged as one of the major battlefields of artificial intelligence. Breitbart News social media director Wynton Hall has written his instant bestseller Code Red: The Left, the Right, China, and the Race to Control AI to serve as the definitive guide on how the MAGA movement can create positions on AI that benefit humanity without handing control of our nation to the leftists of Silicon Valley or allowing the Chinese to take over the world.
Read more at the Hill here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.