New York Governor Kathy Hochul has signed a one-year moratorium on large data center constructions to evaluate their environmental impact.
New York Governor Kathy Hochul has enacted a significant executive order establishing a one-year moratorium on new large data center constructions, marking the first state-level ban of its kind in the United States. This order, signed on July 14, prohibits new environmental permits for data centers exceeding 50 megawatts (MW) as the state seeks to evaluate the environmental impacts of these facilities.
The decision aims to address concerns regarding electricity consumption and the strain on water resources that large data centers could impose. The increase in the capacity threshold from the previous 20 MW is designed to exclude smaller facilities typically utilized by hospitals.
Alongside this moratorium, a proposed legislative measure with more stringent regulations awaits the governor's approval. This initiative aims to enhance scrutiny on the operational impacts of data centers.
Governor Hochul has tasked the Department of Public Service with developing a framework that encourages data centers to invest in New York's energy infrastructure. Additionally, data centers with power loads of 5 MW or more will be obligated to obtain a progressively increasing percentage of their electricity from renewable sources, starting at one-third by 2030 and reaching 90% by 2040.
Originally, lawmakers considered a three-year moratorium, but negotiations led to a compromise of one year. The governor also indicated plans to remove sales tax exemptions for large data centers in future legislative discussions.
The Data Center Coalition (DCC), representing data center operators, has voiced strong opposition to the moratorium. Kara Bender, the DCC's Director of Government Affairs, expressed concerns that this move could harm New York's economy and deter future investments, suggesting it sends a message that the state is not welcoming to businesses.
Ken Pokalsky, Vice President of the New York State Business Council, criticized the bill's demands as "excessive and unworkable," arguing that they could hinder economic growth in the region due to stringent environmental requirements.
In comparison, Maine's legislature attempted to impose an 18-month moratorium earlier in 2026, which was vetoed by Governor Janet Mills. As of June 6, the U.S. Data Center Moratorium Tracker reports 127 active moratoriums nationwide, a significant increase from 58 in April.
