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Key developments
New York advances hyperscale data center moratorium
New York lawmakers approved a one-year moratorium on permits for new data centers with peak electricity demand of 20 megawatts or more, pending Gov. Kathy Hochul’s signature. The pause would allow state review of impacts on energy demand, utility rates, water resources and environmental conditions. The measure directly affects debate around Stream Data Centers’ proposed $19.5 billion, 2.2 million-square-foot STAMP campus in Genesee County, which critics say could require about 500 megawatts of power.
Why it matters
If signed, New York would become the first state to temporarily halt new hyperscale data center development while studying grid, water and ratepayer impacts.
Sources & driving stories
ROCHESTER BUSINESS JOURNAL · Andrea Deckert
Rochester Business Journal coverageFederal data center oversight law may lapse
WIRED reported that the Federal Data Center Enhancement Act, passed in 2023, is set to expire in September without an evident replacement from Congress or the Trump administration. The law requires federal agencies to consider and report on data center energy use, water use, sustainability, efficiency and contractor-site performance. The Register separately noted the law also covers uptime, power-failure protection, physical security and natural-disaster resilience standards.
Why it matters
A lapse would reduce federal visibility into data center resource use, cybersecurity and procurement discipline just as federal AI infrastructure demand is rising.
Sources & driving stories
WIRED
WIRED coverageTHE REGISTER · Dan Robinson
The Register coverageLocal data center moratoria spread in Tennessee
McMinnville and Coffee County, Tennessee, unanimously passed data center moratoria on June 9 after resident opposition, according to Tennessee Lookout reporting by Cassandra Stephenson. Nashville’s council also advanced a moratorium bill on first reading June 9, with a separate restrictions bill set for Planning Commission consideration June 25. Officials cited electrical grid capacity, water and stormwater impacts, environmental and public health concerns, noise and community fit; a proposed Hixson Data Center would be a 96,064-square-foot, 25-megawatt facility using natural gas and diesel generators.
Why it matters
The Tennessee actions show local governments moving faster than state regulators to pause or condition data center siting amid power, water and neighborhood concerns.
Sources & driving stories
TENNESSEE LOOKOUT · Cassandra Stephenson
Tennessee Lookout coverageWorth noting
WORTH NOTING
Maryland shifts grid upgrade costs
The Daily Record reported that Maryland’s new Utility RELIEF Act requires data centers and other large-load customers to register with the Public Service Commission and pay for transmission and distribution upgrades needed for grid connection.
WORTH NOTING
Virginia tax exemption fight escalates
WAVY reported that state Sens. Louise Lucas and Mamie Locke used a June 14 Hampton listening-tour event to advocate removing data center tax exemptions in Virginia’s next state budget, due June 30.
WORTH NOTING
Floating data center prototype tested
Forbes reported that Panthalassa is testing its Ocean-2 wave-powered floating data center node off Washington state and is targeting commercial units in 2027 after raising $140 million in May.
Still unclear
OPEN QUESTION
Will Hochul sign New York’s moratorium?
The governor’s decision will determine whether New York becomes a test case for statewide hyperscale permitting pauses and could affect Stream’s $19.5 billion Genesee County project.
OPEN QUESTION
Who pays for grid capacity?
Maryland, Tennessee, Kentucky, Wisconsin and Texas signals all point to unresolved disputes over whether data centers, utilities or ordinary ratepayers should bear new infrastructure and reliability costs.