NY Governor imposes one-year moratorium on new data centers

New York Governor Kathy Hochul signed an executive order on Tuesday, July 14, 2026, enacting a one-year statewide moratorium on the construction of new large data centers, the first such action by any U.S. state. The order immediately pauses state environmental permitting for new hyperscale data centers that require 50 megawatts or more of power to operate.

The governor stated the moratorium is necessary to address rising concerns over the facilities' strain on the electrical grid, water resources, and potential to increase utility bills for residents. "As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead," Hochul said in a statement. She added that New York would create the strongest data center development standards in the nation during the pause.

The order directs state regulators to develop a comprehensive regulatory framework to assess the environmental impact, energy demand, and water usage of future facilities. The moratorium will last up to one year or until the new standards are finalized, after which permitting can resume for projects meeting...