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New York Blocks New 50 MW Data Centre Permits For Up To A Year

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The Verge reported that New York Governor Kathy Hochul signed an executive order blocking new environmental permits for hyperscale data centres above 50 megawatts for up to a year. The report said a stricter 20 megawatt legislative moratorium still awaits her decision.

Verified against source materialEdited by SendTech Times Cloud & Infrastructure DeskSource: The Verge
New York Blocks New 50 MW Data Centre Permits For Up To A Year
Image source: The Verge

New York has paused new environmental permits for hyperscale data centres above 50 megawatts for up to a year after Governor Kathy Hochul signed an executive order, according to The Verge.

A stricter bill passed by state lawmakers still awaits her signature.

The Verge noted that the legislative text uses a 20 megawatt threshold, below the 50 megawatt level in the executive order.

New Permits Stop Above 50 Megawatts

Her office stated that the higher threshold is meant to avoid disrupting smaller facilities used by institutions such as hospitals.

In a statement cited by The Verge, Hochul said data-centre development threatens to raise utility bills, deplete natural resources and create uncertainty for New Yorkers.

Officials could not immediately identify how many proposals would be affected.

The separate legislative moratorium remains unsigned.

DPS Gets Up To One Year To Draft Standards

The moratorium can last up to a year while the Department of Public Service develops standards for assessing environmental impacts from data-centre construction and operation.

The Verge indicated that those standards are expected to cover water use and air quality.

The executive order also asks the department to consider a mechanism for data centres to invest in New York's energy infrastructure.

It also directs the state's development arm to work on a framework that helps local communities negotiate benefits when data-centre projects seek approval.

Data-Centre Subsidy Changes Remain Open

Maine nearly became the first state to pass a data-centre moratorium before its governor vetoed a bill in April, according to The Verge.

Communities in several states have raised concerns about energy prices and environmental impacts as AI accelerates infrastructure demand.

Hochul also plans to ask the legislature next year to roll back sales-tax exemptions for large data centres.

Her office did not identify the number of affected proposals, publish final DPS standards or say whether the 20 megawatt legislative moratorium will be signed.

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