New York Leads U.S. Trend in AI Data Center Bans

Governor Kathy Hochul signed an executive order on July 14, 2026, imposing a one-year moratorium on the construction of new data centers using 50 megawatts or more of power. This action makes New York the first U.S. state to enact such a freeze, which halts the issuance of discretionary permits by the New York State Department of Environmental Conservation. Hochul stated that the pause will remain in place while the state establishes a framework to prevent utility bill hikes and protect natural resources, and she further indicated plans to repeal sales tax exemptions for these facilities.

This statewide move reflects a burgeoning national trend of local governments restricting AI infrastructure to protect grids and water supplies. In Ohio, the Girard City Council passed a 12-month moratorium, following similar actions in Niles and Lordstown. U.S. Representative Greg Landsman introduced the Protecting Communities from Data Center Impacts Act to mandate federal studies on the environmental effects of these hubs. In Massachusetts, the cities of Westfield and Holyoke implemented a moratorium and an outright ban, respectively, while Governor Maura Healey paused tax incentive applications.

Similar restrictions emerged in Missouri, where St. Charles County approved a six-month pause. On July 14, the Roane County Commission in Tennessee requested a two-year moratorium, and the Cass County Planning Commission in Nebraska recommended a freeze to refine zoning rules. These developments contrast with other state-level responses, such as in Maine, where Governor Janet Mills previously vetoed a proposed 18-month moratorium.