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New York Halts New Data Centers: Measure Seeks to Protect Electricity Bills
🇦🇷 Argentina /Energy & Infrastructure

New York Halts New Data Centers: Measure Seeks to Protect Electricity Bills

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • New York Governor Kathy Hochul has imposed a one-year moratorium on new hyperscale data centers.
  • The measure aims to assess the impact of these facilities on the state's electrical grid and prevent cost increases for consumers.
  • The state will analyze electricity demand, water usage, air quality, and community effects before establishing new standards.

New York Governor Kathy Hochul has signed an executive order establishing a moratorium of up to one year on new hyperscale data centers. This move suspends the issuance of certain environmental permits while the state analyzes the potential effects of these massive facilities on its electrical grid. Governor Hochul stated that the simultaneous arrival of numerous large data centers could overwhelm the grid's existing capacity.

She warned that this strain could force electricity users to bear the cost of new energy infrastructure projects. Hochul's administration aims to prevent significant increases in electricity bills for both residents and businesses resulting from the expansion of this technology infrastructure. The moratorium provides the state with crucial time to develop comprehensive standards regarding electrical demand, water consumption, air quality, and broader community impacts.

Right now, I have more than 30 projects underway in New York State, and if I put them all into motion, we wouldn't be able to turn on the lights tomorrow. That's how serious the situation is.

— Kathy HochulExplaining the urgency behind the moratorium on new data centers.

"Right now, I have more than 30 projects underway in New York State, and if I put them all into motion, we wouldn't be able to turn on the lights tomorrow. That's how serious the situation is," Hochul emphasized. The state's Department of Public Service will conduct a thorough environmental impact study during this period. Once new standards are finalized, projects can proceed only if they meet state requirements and secure local approvals.

This moratorium is reportedly the first of its kind in the U.S. for data centers. While not halting all projects outright, its effect will depend on the specific permits required and the progress of each application. Simultaneously, New York is fostering technological innovation through initiatives like Empire AI, a consortium focused on computing capacity for public research, and is analyzing AI's risks and opportunities.

We have to reflect carefully on this, and that's what I'm excited to do.

— Kathy HochulDescribing her approach to addressing the data center expansion.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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