Overview
- Gov. Kathy Hochul signed an executive order Tuesday that halts state permitting for new data centers that consume or can consume 50 megawatts or more of electricity for up to one year.
- The order exempts projects that already have permits and directs the Department of Public Service and DEC to complete a Generic Environmental Impact Statement that will assess electricity demand, water use, air and noise impacts, and effects on disadvantaged communities.
- Empire State Development must deliver a Community Investment Framework within 60 days to guide local benefit deals and workforce rules while DPS will study a Grid Acceleration Fund to require developer contributions for transmission upgrades.
- Reactions split: environmental and local advocacy groups welcomed the pause as protection for ratepayers and water supplies, while industry groups and some unions warn of lost investment, jobs and tax revenue.
- New York’s move narrows but accelerates earlier legislative efforts that used a 20 MW threshold and may serve as a model for other states weighing how to make hyperscalers pay for grid impacts and local costs.