New York Enacts First Statewide Moratorium on Hyperscale Data Centers

On July 14, 2026, Governor Kathy Hochul signed an executive order that imposes a one-year pause on the issuance of state environmental permits for any new hyperscale data center requiring more than 50 megawatts of electricity. The order directs the Department of Public Service to evaluate the environmental and energy impacts of such facilities and to develop a generic environmental impact statement and a unified permitting process for future projects. Critical infrastructure—including hospitals, universities and research labs—is exempted.

Wired Magazine

The moratorium follows the Responsible Data Center Development Act, passed by the New York legislature in June 2026. The bill originally set a 20-megawatt threshold and included broader reforms; Hochul’s order narrows the pause to facilities over 50 megawatts but adds a mandate to end all state tax incentives for data centers. The move aligns New York with at least 13 other states that have introduced similar moratoriums, and follows Maine’s earlier legislative attempt that was vetoed by Governor Janet Mills.

Wired Magazine

A 50-megawatt data center consumes enough power to supply roughly 40,000 typical homes, straining the electric grid and requiring millions of gallons of water daily for cooling. Hochul’s administration argues that the pause will prevent higher utility bills, protect water resources, and give regulators time to craft the “strongest possible framework” for community protection. The order also signals an end to lucrative sales-tax exemptions previously granted to such facilities.

Governor Hochul Enacts Historic Moratorium on New York AI Data Centers

Support came from the bill’s sponsor, Democratic state senator Kristin Gonzalez, who emphasized that technology should not “pollute our water, strain our energy grid, or drive up our utility bills.” Environmental groups such as Food and Water Watch praised the executive action as a direct result of earlier legislative pressure.

Wired Magazine

Opposition includes Republican Nassau County Executive Bruce Blakeman, who argued that local municipalities should negotiate tax and infrastructure deals rather than face a blanket prohibition. Tech-industry lobbyists warned that the moratorium could “inflict severe economic self-harm,” diverting investment to neighboring states and ceding AI leadership to rivals like China.

Governor Hochul Enacts Historic Moratorium on New York AI Data Centers

• “We have no choice but to address the challenges created by these massive facilities,” — Kathy Hochul, Governor of New York

Wired Magazine

• “Technology should make our lives better, not pollute our water, strain our energy grid, or drive up our utility bills,” — Kristin Gonzalez, Democratic state senator

Wired Magazine

• “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,” — Kathy Hochul, Governor of New York

Governor Hochul Enacts Historic Moratorium on New York AI Data Centers

• “New York will lead the way in creating the strongest standards in the nation.” — Kathy Hochul, Governor of New York

Governor Hochul Enacts Historic Moratorium on New York AI Data Centers