Governor Hochul Imposes First U.S. Statewide Data Center Moratorium

Governor Kathy Hochul signed an executive order on July 14, 2026, imposing a one-year moratorium on the permitting and construction of new hyperscale data centers in New York. The freeze targets facilities requiring 50 megawatts or more of power, making New York the first state in the U.S. to enact such a statewide pause. Hochul stated the measure is necessary to prevent rising utility bills and resource depletion, asserting that the electric grid cannot support these centers without risking shortages.

During the moratorium, the New York Department of Public Service and the Department of Environmental Conservation will develop a Generic Environmental Impact Statement to establish standards for energy, water, and air quality. The governor also directed the Empire State Certified Development Corporation to create a Community Investment Framework, potentially requiring developers to invest $1 million per megawatt of demand into local infrastructure. Additionally, Hochul announced plans to pursue legislation to repeal sales tax exemptions for large data centers.

President Donald Trump condemned the order as a "terrible decision," describing data centers as "money machines" and "liquid gold" for jobs and tax revenue. Republican challenger Bruce Blakeman and the Data Center Coalition warned the move would drive billions in investment to other states. Conversely, state lawmakers like Kristen Gonzalez and Didi Barrett supported the action to ensure "Big Tech" operates on the state's terms.

This trend is appearing elsewhere; local governments in South Carolina, Mississippi, Tennessee, and Indiana have recently implemented or considered similar pauses. In New Albany, Indiana, the city council passed a one-year moratorium on centers larger than 100,000 square feet to evaluate environmental risks.