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    Home»Real Estate Analysis»Hochul Orders Year-Long Data Center Construction Moratorium

    Hochul Orders Year-Long Data Center Construction Moratorium

    Team_WorldEstateUSABy Team_WorldEstateUSAJuly 14, 2026No Comments3 Mins Read
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    Gov. Kathy Hochul has put a one-year kibosh on constructing large information facilities throughout New York as regulators dial of their environmental impacts and energy use.

    The governor Tuesday ordered a moratorium on massive information facilities to permit the state to develop an environmental evaluation and set constant requirements whereas establishing guidelines for a way they will present their very own vitality, Newsday reported.

    The hyperscale amenities that energy synthetic intelligence have obtained pushback from residents whereas communities grapple with their potential environmental and monetary impacts.

    The one-year suspension applies to information facilities exceeding 50 megawatts that haven’t obtained permits to start out building. The chief order gained’t apply to hospitals, analysis facilities and faculties. 

    “As information middle improvement threatens to hike up utility payments, deplete our pure assets and create uncertainty for New Yorkers, it’s my accountability to take motion and lead,” Hochul mentioned. 

    Her announcement comes on the heels of a bill passed by state lawmakers final month that might have additionally put a one-year delay on constructing new massive information facilities. The invoice would have additionally required builders to attract not less than a 3rd of their energy from renewable sources. 

    The governor determined to challenge the chief order to extra rapidly meet residents’ issues, based on her workplace. The order doesn’t preclude Hochul from signing the brand new laws.

    The state, in the meantime, is seeking to squeeze extra advantages from massive information middle improvement.

    Hochul has directed the Division of Public Service to think about making a fund to require information middle builders to spend money on the state’s energy grid and mitigate the elevated demand. The governor ordered the division this yr to set guidelines requiring information facilities to both produce their very own energy or transport it to the positioning.

    She mentioned she’d pursue laws subsequent yr to strip information facilities throughout the state of gross sales tax exemptions.

    In the meantime, Empire State Growth is organising a group funding framework for native governments that need to lower group profit offers with information middle builders, based on Newsday. 

    Bruce Blakeman, the Republican working in opposition to Hochul for governor, mentioned final month he would oppose a moratorium on information facilities as a result of the method was too broad. As a substitute, he mentioned if a group wished a knowledge middle, it needs to be allowed to pursue it.

    Lawmakers in 15 states are contemplating bans on information facilities, however no measure has gone into impact as of July 1, based on the Nationwide Convention of State Legislatures.

    – Dana Bartholomew

    Learn extra

    Proposed $19.4B NY data center faces infrastructure, community hurdles


    NY State Sen. Liz Krueger and Assemblyperson Anna Kelles

    New York lawmakers introduce data center development moratorium






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