Data centers are increasingly driving policy conflict that can spill into higher education planning—through energy costs, environmental permitting, and local economic impacts. New York became the first state to enact a statewide moratorium on large hyperscale data centers, pausing permitting until July 2027 while regulators build standards for environmental impact and energy demand. The moratorium includes a carveout for a proposed Grid Acceleration Fund requiring data centers to help invest in grid upgrades, as regulators consider energy affordability proceedings and an environmental impact statement. Academic communities are also navigating the broader local debate. Separate reporting argues data center development can raise jobs and growth but benefits may depend on local economic conditions, while other coverage notes electricity pricing pressure from data-center demand. For universities—especially those planning AI compute initiatives—the policy developments signal longer permitting timelines and rising scrutiny of power, water, and environmental assumptions.