New York Governor Signs First Statewide Data Center Moratorium
Original: New York Governor Signs First Statewide Data Center Moratorium
Why This Matters
The first U.S. statewide data center moratorium signals growing regulatory pressure on AI and cloud infrastructure expansion.
New York Governor Kathy Hochul signed an executive order on July 14, 2026, enacting a one-year moratorium on hyperscale data center development — the first statewide pause of its kind in the U.S. — targeting facilities over 50 megawatts and halting state environmental reviews during that period.
Governor Hochul's executive order pauses state environmental reviews for data center facilities exceeding 50 megawatts for one year. During this period, the state's Department of Public Service is directed to assess the environmental and energy impact of data centers and develop a new generic environmental impact statement and permitting framework. Hochul also proposed eliminating all state tax incentives for data centers. 'We have no choice but to address the challenges created by these massive facilities,' Hochul said at a Tuesday press conference in New York City, adding that the pause would allow the state to create the 'strongest possible framework to protect our communities.' The order follows months of pressure from lawmakers, environmental, faith, and labor groups. In early June, the New York legislature passed the Responsible Data Center Development Act — a bipartisan omnibus bill covering multiple data center reforms — which remains under Hochul's review. The executive order is less restrictive than that legislation, which sets a 20-megawatt threshold. Advocates for the bill nonetheless praised the move. Hochul previously signed a one-year moratorium on cryptocurrency mining in 2022. At least 13 other states are reportedly considering similar measures.