New York Governor Signs One-Year Moratorium on Large Data Centers

New York Governor Kathy Hochul signed an executive order July 14 imposing a one-year moratorium on new data centers that require 50 megawatts or more of electricity. The order pauses state environmental reviews for such facilities and instructs the Department of Public Service to assess their effects on the grid, natural resources and local communities.

It also directs development of a new generic environmental impact statement to guide future permitting.

The moratorium applies only to new permit applications and leaves existing valid permits unaffected. Hochul said at a New York City press conference that the facilities consume large amounts of power and water, can raise carbon emissions and utility rates, and produce noise and vibrations.

She added that data centers must either generate their own power or pay a premium for grid access, and she aims to end sales tax exemptions for large-scale projects.

The executive order is narrower than the Responsible Data Center Development Act passed by the state legislature in early June, which set a 20-megawatt threshold. That bill has remained on Hochul's desk since passage. Hochul stated the pause will allow time to create the strongest possible framework to protect communities.

Democratic state senator Kristin Gonzalez, sponsor of the legislation, said technology should improve lives without polluting water, straining the grid or raising utility bills. Hochul previously signed a one-year moratorium on cryptocurrency mining in 2022 and said in her State of the State address earlier this year that data centers should pay their fair share for power.

At least 13 other states introduced data center moratorium bills in 2026.

Maine passed the first such measure out of a legislature in April before its governor vetoed it. A Siena University poll conducted in June found roughly half of New York voters viewed a one-year moratorium favorably, while 21 percent opposed it and 17 percent were undecided.