Gov. Kathy Hochul announced an executive order establishing a one-year statewide moratorium on new hyperscale data centers as the state develops a regulatory framework the administration says will protect ratepayers, the environment and the electric grid. The governor held a roundtable in Western New York with local elected officials and community leaders to discuss the policy.
What the executive order does
The executive order temporarily pauses state environmental permitting for new hyperscale data centers for up to one year while agencies develop consistent statewide standards. During the moratorium the New York State Department of Environmental Conservation (DEC) will not issue discretionary permits that are not already deemed complete, the administration said.
The Department of Public Service (DPS) has been directed to prepare a Generic Environmental Impact Statement (GEIS) for data centers, a process the administration says could take up to a year. DPS also has been asked to consider a New York Grid Acceleration Fund that would require data center developers to invest in grid upgrades, clean energy supply, or an insurance pool to address speculative large loads.
Empire State Development (ESD) has been directed to produce a Community Investment Framework (CIF) within 60 days. The CIF is intended to give localities guidance and negotiating tools to secure community benefits in large-scale data center deals — including infrastructure improvements, child care investments, local hiring and workforce development, prevailing-wage standards, and project labor agreements. The administration said a policy outline for the CIF is available on ESD’s website and that a copy of the executive order is available as well.
The governor is also pursuing legislation to repeal sales tax exemptions for massive data centers across New York State.
Local officials and reactions
Hochul framed the pause as a way to prevent rising utility costs for New Yorkers and to allow careful study of data centers’ energy and water demands and other environmental impacts. “Here in New York, we will not burden our communities with rising utility costs. This first-in-the-nation statewide moratorium is putting the success of those who call New York home first,” the governor said in the release.
Local leaders from Western New York who participated in the roundtable included State Senator Jeremy J. Zellner; Assembly Majority Leader Crystal Peoples-Stokes; Assemblymember William Conrad; Deputy Erie County Executive Lisa Chimera; and mayors and supervisors from Tonawanda, North Tonawanda, Kenmore and Fredonia, among others. Several local officials praised the pause as an opportunity to negotiate community benefits and protect local resources.
Next steps
The GEIS and CIF are intended to produce the statewide standards that will allow new projects to proceed after the moratorium, provided they meet the finalized state requirements and local zoning and approval processes. The administration said it will solicit public feedback on the CIF outline.
Reporting here is based on a state press release summarizing the executive order and the Western New York roundtable. The release notes policy documents and the executive order are available on state websites but did not include direct links in the materials provided to the newsroom.
