New York enacts data center moratorium

On July 14, 2026, New York Governor Kathy Hochul signed an executive order imposing a one-year moratorium on new hyperscale data centers using 50 megawatts or more of power, making New York the first U.S. state to enact such a statewide ban. The order halts state environmental permitting for these facilities while the Department of Public Service develops a Generic Environmental Impact Statement (GEIS) to assess impacts on energy demand, water use, and air quality. Hochul also directed the creation of a New York Grid Acceleration Fund to require data center investments in grid infrastructure, and is pursuing legislation to repeal sales tax exemptions for large data centers. The move responds to growing public concern over rising utility bills, water depletion, and environmental effects from AI-driven data center expansion. The state legislature had passed its own moratorium bill in June, but Hochul opted for immediate executive action while reviewing the legislation. The moratorium has drawn support from progressive lawmakers like Senator Kirsten Gillibrand and opposition from construction unions and business groups who argue it will kill jobs and drive investment to other states. President Donald Trump has warned states against regulating AI, and similar moratorium proposals in other states have stalled or been vetoed.