Data Center Moratorium Executive Order Response

Governor Hochul’s Executive Order (EO) establishing a moratorium on new hyperscale data centers is a step in the right direction that will help ensure New York fully understands the impacts of this rapidly growing industry before additional large-scale projects move forward.

I am encouraged that the moratorium will remain in place until the State completes a statewide environmental review of large data centers. Taking the time to evaluate and report on the cumulative impacts of these facilities before issuing additional permits will provide policymakers, local governments, and the public with a stronger foundation for future decisions.

There are a few key differences between the Governor’s EO and the Legislature’s omnibus bill, A11560. The Executive Order identifies several important issues for the statewide environmental review, including energy demand, water resources, air quality, disadvantaged communities, and noise. A11560 requires a broader review that includes issues such as electronic waste, farmland, and public health. Additionally, the EO applies to data centers with a projected electric demand of 50 megawatts or more. A11560 instead applies beginning at 20 megawatts because facilities below 50 megawatts can still have significant economic and environmental impacts.

The Executive Order takes a step toward protecting ratepayers by directing the Department of Public Service (DPS) to consider mechanisms, including a Grid Acceleration Fund, to address the costs of large data centers. A11560 goes a step further by requiring DPS and the Public Service Commission to establish a separate utility rate class so the electric, drinking water, and wastewater costs attributable to these facilities are paid by the data centers creating these costs, rather than existing ratepayers.

The Executive Order begins an important process. The next important step is signing A11560, which would put many of these protections into law. It would require meaningful investments in host communities, establish clear sustainability and labor standards, and provide stronger long-term protections for New York’s environment and communities.