New York Sets Limits on Data Center Growth
The United States currently holds the record for the most data centers globally, but New York state’s expansion in this area will be slowing down, at least temporarily.
Governor Kathy Hochul recently discussed a pressing issue in modern technology, stating that data centers introduce a significant amount of uncertainty for New Yorkers.
“New York will lead the way,” she affirmed.
On Tuesday, Hochul signed a presidential order outlining her stance on data center development.
“As data center development risks increasing utility costs, depleting natural resources, and creating uncertainty for residents, I must take decisive action,” Hochul stated, as reported by Politico.
The order will temporarily halt the construction of new large-scale data centers—those consuming over 50 megawatts of power—for up to a year. This pause aims to develop a comprehensive framework dealing with environmental and energy regulations for data centers.
“New York State will implement the strongest standards for data center development in the nation, ensuring that as companies thrive due to New York, the people of New York benefit as well,” Hochul added.
Meanwhile, the state is working on a “Regional Investment Framework” designed to assist local communities in reaping “economic benefits” that could mitigate any adverse effects from new data centers.
This framework will establish an investment fund where data center developers contribute to cover energy costs and public services. Furthermore, developers will be required to engage unions for construction, local hiring, and workforce development.
However, Nassau County Executive Bruce Blakeman, a Republican and Hochul’s opponent in the gubernatorial race, opposes the statewide moratorium. According to the Associated Press, Blakeman argues that local governments should have the authority to engage with companies if the projects promise substantial economic advantages.
In areas like Rockland County, public resistance to data centers has been notable, with local residents rallying against projects like Databank’s Orangeburg campus, located about 40 miles from Manhattan.
As it stands, the United States leads globally with over 4,400 data centers, while the UK and Germany follow with more than 550 and 520 respectively, according to Statista.
Interestingly, a report from Clean View indicates that there are currently about 1,200 operational data centers in the U.S., with an additional 1,700 planned—totaling just under 3,000 current and future sites.
