New York Becomes First US State to Ban Large Data Center Construction

Executive Briefing

• Governor Hochul signed an executive order pausing environmental permits for data centers consuming over 50 megawatts for up to one year.
• Aims to protect New York's electrical grid, environment, and local communities while permanent regulations are developed.
• Separate legislation, the Responsible Data Center Development Act, passed by the state legislature, awaits Hochul's signature.
• Multiple states including Maine, Washington, and Illinois are pursuing similar bans amid growing public opposition to data centers.
• Hochul reversed her earlier position that such bans should be left to local communities, citing rising utility bills and resource depletion concerns.