Governor Kathy Hochul's executive order prohibits the construction of new large-scale data centers that use 50 megawatts or more of power for one year. This decision comes amid rising electricity costs in New York, which have surged nearly 68% since 2019, leading to public backlash against proposed data center projects.
Hochul emphasized the need to protect local ratepayers from increased costs associated with these facilities, which have been criticized for their high energy and water consumption. Environmental advocates, such as Laura Shindell from Food & Water Watch, praised the moratorium as a victory for communities concerned about the impact of Big Tech on local resources.
However, some lawmakers, including Assemblyman Scott Gray, argue that the moratorium could hinder New York's competitiveness in the tech sector and that decisions regarding data centers should be made at the local level. Polling indicates that a majority of New Yorkers support the moratorium, suggesting a significant public sentiment against unchecked data center expansion.
The moratorium may lead to further regulatory actions, including potential legislation to repeal sales tax exemptions for data centers and requirements for these facilities to invest in clean energy solutions. This landmark policy reflects a broader trend, as other states are also considering similar restrictions on data center construction