In a stunning first, New York bans large data centers statewide

The United States has by far the most data centers of any country in the world, but that growth will slow for least some time in New York state.

New York Governor Kathy Hochul (D) weighed in on one of the most controversial topics of the modern tech era this week, saying data centers create a high degree of uncertainty for her constituents.

‘New York will lead the way.’

Hochul signed an executive order on Tuesday, making her position on the current status of data centers clear.

“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” the governor said, per Politico.

Hochul and New York will block the construction of any new large data centers for up to one year, which, as reported by Reuters, is classified as any data center using 50 megawatts or more of power.

The purpose is to allow New York state to create the framework surrounding environmental and energy regulation in relation to the data centers.

“New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too,” Hochul added.

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At the same time, the state will develop a “community investment framework” that has the stated intention of helping local communities access “economic benefits” that mitigate “potential negative effects” of new data centers.

The framework would create an investment fund that data center developers would put money into to help pay for energy costs and public services. In addition, the data center developers would have to allow labor unions to weigh in on construction, local hiring, and workforce development.

Nassau County Executive Bruce Blakeman, Hochul’s Republican counterpart in the gubernatorial election, opposes the statewide moratorium. The Associated Press reported that Blakeman said local governments should be allowed to make deals with companies on their own accord if the projects promise sufficient economic benefits.

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New York has seen significant resistance to data centers in areas like Rockland County, where residents packed the town hall to the rafters in opposition to DataBank’s Orangeburg Campus, which is about 25 miles north of Manhattan.