New York State Begins
Moratorium on Large Data Centers
ALBANY—New York Gov. Kathy Hochul signed an Executive Order on Tuesday that imposes a moratorium on large data centers for up to a year.
The Executive Order freezes the development of large-scale data centers (50 megawatts or larger) in the state while state agencies draft rules to ensure that data centers pay their fair share of utility costs, protect the environment, and provide benefits to host communities, the governor stated in a news release. The moratorium is the first of its kind in the nation.
“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,” Gov. Hochul said. “New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”
The governor also stated that she would work with state legislators to repeal sales tax exemptions for data centers.
According to the Syracuse Post-Standard, the governor has ordered the Department of Environmental Conservation not to issue permits to new data centers until state officials develop a generic environmental impact statement to evaluate each project’s impact on energy demand, water use and air quality.
According to the governor’s news release, “Once the state finalizes these standards, the moratorium will be lifted, allowing new data center projects to proceed as long as they follow state zoning code and other local approvals.”
Published: July 15, 2026.