New York State to Halt Environmental Permits for Data Centers
Governor Kathy Hochul has announced that New York state regulators will not be granting environmental permits for large data centers in the coming year.
She is set to sign an executive order that will “suspend” new air permits for what are referred to as “hyperscale” data centers that intend to utilize the state’s power grid for a period of up to a year.
“Data center development poses risks of increased utility costs, depletion of natural resources, and uncertainty for residents,” Hochul stated, emphasizing her responsibility to take initiative.
She further noted, “New York State is leading the way in establishing some of the toughest standards in the nation for data center development, ensuring that success in business also translates to success for New Yorkers.”
In recent times, technologies like artificial intelligence have surged, creating greater demand for vast facilities filled with computers that, understandably, need considerable electricity.
Interestingly, a recent opinion poll by Siena University revealed that around half of New York voters are in favor of this one-year shutdown for large data centers. Specifically, 21% viewed it positively, while 17% considered it a bad idea, and another 17% deemed it reasonable.
This moratorium only pertains to new applications and will last “up to one year” while the state conducts research to develop new regulations for data centers.
Once the state finalizes these standards, Hochul stated, the moratorium could be lifted, allowing new projects to move forward as long as they comply with state laws, zoning regulations, and other local approvals.
It’s worth noting, however, that this action is less stringent than a more comprehensive proposal passed by the state Legislature earlier this year, which included stipulations for data centers to implement union-friendly pay standards and rely significantly on renewable energy sources.
Business interest groups have expressed strong opposition to that bill.
