Key facts
- New York legislature to pass a one-year pause on new data center construction.
- Tech leaders warn the moratorium could stifle the state's economy.
- Governor Hochul prefers local control over statewide data center permitting.
New York is on the verge of enacting a one-year moratorium on the construction of new data centers. This legislative move has drawn criticism from tech industry leaders, who argue that such a pause could hinder economic development and innovation within the state. They contend that this is the latest in a series of actions perceived as stifling the economy. However, Governor Kathy Hochul has previously expressed skepticism regarding broad, statewide restrictions on data centers. Her stance has leaned towards empowering local municipalities to make decisions regarding data center permitting, suggesting a preference for a more decentralized approach to regulation.