New York becomes first state to impose a data center moratorium

What happened

New York Governor Kathy Hochul signed an executive order on July 14, 2026 imposing a moratorium on new hyperscale data center construction over 50 MW — the first such statewide action in US history.

Context and impact

The state is pausing discretionary environmental permits for up to one year while the Department of Public Service develops a Generic Environmental Impact Statement for data centers. The order directly affects Microsoft, Google, Amazon, and Meta expansion plans in the state. The AI industry fears a domino effect as other states consider similar measures before elections.

Details

• Moratorium lasts up to 12 months from signing
• Applies to facilities with electrical demand of 50 MW or more
• DEC will not issue discretionary permits during GEIS development
• Goal: protect ratepayers from rising energy costs driven by AI infrastructure
• New York is the first US state to impose such a broad moratorium
• DIGIT Office gains authority to oversee safety measures of frontier AI developers