NY Governor Hochul freezes new hyperscale data centers, halting permits for facilities over 50 MW

Published Jul 15, 01:31 PM UTC

New York Governor Kathy Hochul has ordered the nation's first statewide pause on new hyperscale data centers, temporarily halting environmental permits for facilities consuming 50 megawatts or more of power. The freeze, which could last up to a year, aims to address rising utility bills, strain on the power grid, and environmental concerns. Hochul is expected to sign an executive order and may support ending a sales tax exemption for large data centers. The move comes amid growing opposition to AI data centers' massive energy consumption and has political implications ahead of Hochul's reelection campaign. Her Republican challenger Bruce Blakeman opposes the moratorium, arguing local governments should decide. The announcement follows Meta's expansion of its Hyperion data center in Louisiana, where the state offered a 20-year tax exemption.