On July 14, New York Governor Kathy Hochul signed an executive order establishing the first state-level moratorium on large data center construction in the U.S., as reported by The Verge.

The order prohibits the issuance of new environmental permits for data centers with capacities exceeding 50 MW for up to one year. The goal is to give authorities time to assess the impact of these facilities on electricity consumption, water resources, and the environment.

According to Hochul's administration, raising the threshold from the previous 20 MW is intended to exclude smaller data centers, which are often used by hospitals.

Meanwhile, a legislative initiative with stricter conditions is awaiting the governor's signature. This initiative aims to further scrutinize the impacts of data centers.

Hochul has also directed the Department of Public Service to explore a mechanism for data centers to invest in the state's energy infrastructure and mandated the relevant agency to create a framework for negotiations between local communities and developers.

Additionally, data centers with loads of 5 MW or more will be required to source at least one-third of their electricity from renewable sources by 2030, two-thirds by 2035, and 90% by 2040.

Initially, lawmakers proposed a three-year moratorium, but after negotiations with stakeholders, the duration was reduced to one year. Furthermore, the governor announced her intention to eliminate sales tax exemptions for large data centers, a topic planned for discussion in the next legislative session.

The Data Center Coalition (DCC), a key lobbying group for data center operators in the U.S., strongly opposes the bill. DCC's Director of Government Affairs, Kara Bender, stated on regional news outlet Spectrum News:

“The state-level moratorium will undermine New York's economy, deter investors from further investments, and send a clear message to businesses that ‘the state is closed for business.’”

New York State Business Council Vice President Ken Pokalsky sent an official memorandum to lawmakers, calling the bill's requirements "excessive and unworkable." He believes that stringent environmental regulations and infrastructure localization requirements will severely impact the region's economic development.

In April 2026, the Maine legislature passed a similar law for 18 months, but Governor Janet Mills vetoed it.

According to the U.S. Data Center Moratorium Tracker, as of June 6, there were 127 active moratoriums. In comparison, there were 58 in April.

Source: U.S. Data Center Moratorium Tracker.

It is worth noting that in July, reports emerged about data center management in Texas circumventing public environmental oversight.