New York and Kentucky City Pause New Data Center Projects

Local and state governments in New York and Kentucky have implemented freezes on data center development to address infrastructure and environmental concerns. Kathy Hochul, Governor of New York, signed Executive Order No. 62 on July 14, 2026, establishing a statewide moratorium on discretionary environmental permits for data centers capable of using 50 megawatts of electricity or more. The pause affects incomplete applications pending with the Department of Environmental Conservation and will last until the Department of Public Service completes a Generic Environmental Impact Statement on the industry's impact on air, water, the grid, and local communities.

Governor Hochul's action follows a legislative standoff over the Responsible Data Center Development Act, which sought a lower 20-megawatt threshold. The order seeks to protect residential taxpayers from bearing the costs of electric system upgrades, particularly as the New York Independent System Operator reported nearly 12 gigawatts of data center load requests queued by May 2026. Additionally, Empire State Development must create a Community Investment Framework within 60 days to help local governments negotiate community benefit agreements.

Separately, the city council of London, Kentucky, approved a two-year moratorium on August 3, 2026. This freeze pauses all new data center developments through September 30, 2028, allowing city leaders to study potential impacts and establish formal zoning rules. The London planning commission has the authority to extend this pause by an additional year if necessary.