New York Governor Pauses Data Center Permits in Executive Order

The Governor of New York issued an Executive Order this week pausing all new discretionary permitting of data centers throughout the state. This pause will stay in place until the New York Department of Public Service (DPS) issues a Generic Environmental Impact Statement (GEIS) examining the impact of data centers on New York’s electric grid and natural resources. A recent GreenbergTraurig memo discusses the specifics of the Executive Order:

“The EO directs DPS to examine impacts associated with the interconnection of data centers to the electric distribution network through the existing proceeding, and further directs DPS to solicit public comments and prepare a GEIS in accordance with the State Environmental Quality Review Act (SEQRA) to assess the potential environmental impacts of data center construction and operation in the state, including energy demand, water use and quality, air quality, disproportionate impacts on disadvantaged communities, and noise levels.

A key nuance is that, until the GEIS and findings statement are completed, DEC must hold in abeyance applications for discretionary state permits related to the construction or expansion of data centers that were not deemed complete before the Order was issued. The pause applies to DEC permits and approvals and does not extend to local government permits.”

A couple of weeks ago, I wrote about how data centers are facing increased scrutiny, especially at the state level. In that blog, I mentioned that New York passed a one-year data center moratorium law, currently pending the Governor’s signature. The law remains unsigned but not vetoed. This Executive Order may signal that the Governor is open to signing the bill into law. Alternatively, it may constitute a half measure, kicking the can down the road until more information is available. The larger trend of states rejecting data centers may make AI more expensive in the short term as hyperscale’s struggle to develop new capacity.