Taking everyone by surprise, on July 14, Governor Hochul signed Executive Order No. 62, immediately imposing a one-year moratorium on discretionary state environmental permitting for new “hyperscale” data centers with an anticipated electric load of 50 megawatts or more. There was no advance word from the administration that the Governor was contemplating an executive order, as there is also legislation pending which has passed both houses of the legislature (A.11560/S.10642).
The Executive Order provides the administration time to study the impacts of large-scale data center development on New York’s electric grid, water resources, and environment, while state agencies develop a broader regulatory framework. Importantly, the Executive Order does not replace, or negate the pending legislation. Rather, it provides an immediate administrative mechanism while the administration continues reviewing the pending legislation. Both Governor Hochul and Assembly Speaker Carl Heastie have publicly stated that the legislation remains under active consideration and that negotiations will continue.
The Executive Order should therefore be viewed as an interim policy measure while the Legislature and Executive negotiate a permanent statutory framework that will address issues beyond the EO, including a lower project threshold, public participation requirements, and renewable energy standards. Therefore, we must remain vigilant regarding the pending legislation and continue to participate in any related negotiations or discussion.
The Executive Order has immediate legal effect. Unless it is rescinded, superseded by subsequent legislation, expires, or is successfully challenged in court, state agencies are directed not to issue discretionary environmental permits for covered projects. Although litigation challenging the Governor’s authority remains a possibility, there is currently no administrative avenue to avoid the moratorium. Accordingly, affected developers and stakeholders should expect the permitting pause to remain in place while legislative negotiations continue and state agencies undertake the studies and regulatory work directed by the Executive Order.
The FY 2027 State Budget enacted the most significant reforms to the State Environmental Quality Review Act (SEQRA) in decades, intended to streamline project reviews and accelerate housing, infrastructure, and clean energy development. State agencies are now beginning implementation of the statutory changes, including updated environmental review procedures and expanded categorical exemptions for certain projects. NYECA will continue monitoring agency guidance and regulatory implementation to assess how the reforms affect project delivery timelines, permitting requirements, and opportunities for electrical contractors participating in public and private construction projects.