New York imposes first-in-the-nation statewide freeze on ‘hyperscale’ data centers
The pause covers facilities using 50 megawatts or more and gives state agencies up to a year to set environmental and grid standards.
- On Tuesday, July 14, 2026, New York Governor Kathy Hochul signed an executive order establishing a first-in-the-nation, one-year moratorium on new hyperscale data centers requiring 50 or more megawatts of power.
- Following a June 4 legislative bill that officials described as "complicated" to implement immediately, Hochul opted for an executive order to accelerate action on grid reliability and community concerns.
- The Department of Public Service will develop a Generic Environmental Impact Statement to establish consistent standards for data centers and may create a Grid Acceleration Fund requiring developers to invest in aging infrastructure.
- Nearly 500 small business owners and more than 100 environmental and community organizations lobbied for passage, citing threats to New York's affordability and environmental health from data center expansion.
- Governor Hochul intends to pursue legislation next January to repeal sales tax exemptions for large data centers, positioning New York at the forefront of a national debate over infrastructure for artificial intelligence.
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New York becomes first US state to impose data centre moratorium
New York became the first US state on Tuesday to halt construction of large new data centres, imposing a one-year moratorium as concerns grow that the facilities driving the artificial-intelligence boom are raising power costs, straining water supplies and burdening local communities. The moratorium positions New York at the forefront of a growing national debate over how to manage the infrastructure needed to support AI. While technology compan…
New York State halts construction of all new data centers
New York has become the first state to temporarily halt approval of large data centers, as Gov. Kathy Hochul argues the AI-driven building boom shouldn’t come at the expense of higher electricity costs, water supplies, or local control.
New York Leads Nation in Moratorium on New Large Data Centers
New York will be the first state to issue a moratorium on new hyperscale data centers as localities across the country grapple with how to regulate the proliferation of energy-hungry facilities.
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