Overview
- Governor Kathy Hochul signed an executive order Tuesday pausing state permits for new hyperscale data centers that use 50 megawatts or more for up to one year while exempting projects with completed approvals.
- The order directs the Department of Public Service to prepare a Generic Environmental Impact Statement, requires Empire State Development to issue a Community Investment Framework within 60 days, asks DPS for a 90-day grid impact report, and tasks the Department of Environmental Conservation with a 12-month review of water rules.
- Officials asked regulators to design mechanisms such as a proposed New York Grid Acceleration Fund to require developers to fund transmission upgrades or build on-site power so upgrade costs do not fall to local ratepayers.
- The move drew immediate pushback from industry and national political figures who warned of lost jobs and investment, while environmental groups, some lawmakers and local advocates praised the step as needed to protect utilities, water and communities.
- As the first statewide pause, New York’s action could become a model for other states and reshape where companies build large AI infrastructure given more than 12 gigawatts of big projects are seeking grid connections in the state.