"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," Hochul said in a statement. She also said that she’s pursuing legislation to repeal tax exemptions for large data centers. The moratorium will apply to data center projects with a capacity of 50 megawatts or more, with the New York Department of Environmental Conservation not issuing any more permits to projects that haven’t been completed yet.
Hochul said that the state will build a Generic Environmental Impact Statement (GEIS) so that future data center developments are held to “consistent standards,” while also looking at how the construction and operation of these projects will impact the environment. Although the data center moratorium is set for one year, the governor’s office said that it will be lifted once the state has finalized the GEIS.
All this pushback has resulted in many jurisdictions passing data center moratoriums. More than 75 projects have already been delayed in the first half of this year , amounting to $130 billion, with New York state being the first one to pass a state-wide temporary ban. Before this, Seattle, which plays host to the headquarters of Amazon and Microsoft , passed a similar one-year moratorium last month .
Texas county passes data center ban for rural areas for a year, move comes in wake of AI data centers moving to remote areas to skirt regulations
Seattle to pass one-year AI data center moratorium next week
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/data-centers/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/data-centers/new-york-enacts-one-year-data-center-ban-on-projects-larger-than-50-megawatts-first-us-state-to-implement-moratorium-will-also-pursue-repealing-tax-exemptions#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.