New York Gov. Hochul Imposes First Statewide Data Center Moratorium

According to Axios, New York Governor Kathy Hochul has imposed a statewide moratorium on new data center projects, marking the first such action by any U.S. governor. The executive order, aimed at addressing voter concerns over the rapid expansion of the industry, was signed Tuesday. Hochul's staff said the move was taken to act quickly, while the governor continues to negotiate with the New York legislature on broader legislation. State Senator Kristen Gonzalez had pushed a more extensive moratorium bill through the legislature, which would have affected projects above 20 megawatts instead of 50, created new electric and water rate classes, and required public hearings. Hochul's order targets projects above 50 megawatts. The governor has indicated she wants to pair the executive order with legislation to prevent hyperscalers from receiving tax benefits. Similar moratorium proposals are emerging in other states, including Texas, where Governor Greg Abbott has called for banning new AI data centers in rural areas and requiring the industry to bear more infrastructure costs.