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Hochul Orders One-Year Pause on New Hyperscale Data Centers

The executive order tasks state agencies with an environmental review and rules to make developers pay for grid and water impacts before new 50 MW-plus projects can win permits.

Overview

  • Governor Kathy Hochul signed the order that took effect Tuesday pausing state permitting for new hyperscale data centers that can draw 50 megawatts or more of power.
  • The order directs the Department of Public Service to prepare a Generic Environmental Impact Statement, tells the DEC to hold discretionary permits in abeyance, and requires Empire State Development to publish a community investment framework on set deadlines.
  • Projects already fully permitted and facilities serving hospitals, schools, research centers, or manufacturing are exempt from the pause while new applications are held up.
  • Environmental groups praised the pause and called for strict limits, industry groups and construction unions warned it could cost jobs and redirect investment, and legislators who passed a broader 20 MW bill said they will keep negotiating a statutory outcome.
  • Local governments from Long Island to Chautauqua County are moving their own moratoria and hearings, and the state review could lead to policies such as on-site power requirements or a developer-funded grid acceleration mechanism that would protect ratepayers and shape national data-center policy.