New York Imposes First Statewide Moratorium on New Data Centers

Key Points

New York is the first state to enact a one-year moratorium on new, large-scale data center permits.
The pause allows the state to create new standards for energy, water, and environmental impacts.
Existing data center projects that have already received approval or broken ground are not affected by the order.
The policy aims to protect the electrical grid and prevent potential utility bill increases for residents.

Background History

As of May 2026, New York faced nearly 12 gigawatts of data center load requests in its interconnection queue, with over eight gigawatts entering the queue in 2025 alone, prompting concerns about grid capacity and resource strain.

New York has become the first state in the nation to implement a temporary, one-year moratorium on the construction of new, large-scale data centers. Governor Kathy Hochul signed an executive order this week that pauses the issuance of state environmental permits for these facilities. The move is designed to provide state officials with the necessary time to develop a comprehensive regulatory framework that addresses the significant energy and water demands associated with modern computing infrastructure, particularly those supporting artificial intelligence.