Intelligence Update
New York's data center pause may set a global precedent
Data centers have become contentious as they strain electricity grids and face increasing public opposition. Governments at all levels are looking for ways to respond that can make data centers good partners to the grid and welcome — or at least acceptable — neighbors in the communities where they are built. Several options have been put forward, including new connection rules that protect consumers and require data centers to pay for infrastructure upgrades, as well as new planning approaches. Some jurisdictions have proposed moratoria on new projects, effectively giving them time to develop and enact these new regulations.
In the US, New York has become the first state to impose a data center moratorium, specifically targeting hyperscale facilities. Governor Kathy Hochul's Executive Order 62 (EO 62) enacts a one-year halt on applications for projects larger than 50 MW while new policies are developed. The required policies are intended to:
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