New York Becomes First State to Impose Data Center Moratorium
The governor signed an executive order pausing construction of hyperscale data centers on Tuesday.
WASHINGTON, July 16, 2026 – New York has become the first state in the U.S. to hit pause on construction of large-scale data centers.
On Tuesday, New York Gov. Kathy Hochul, a Democrat, signed an Executive Order creating the first moratorium on hyperscale data centers to create a blueprint for localities and establish strong standards for data center development in the state.
The Executive Order will temporarily pause New York environmental permits for up to one year, allowing the state to build a regulatory framework for data centers. The framework will include protection for ratepayers, the environment, the energy grid and communities across the state.
The governor explained that the state has always led the way in innovation, but Hochul wants to ensure that New Yorkers benefit from data centers. In the July 14 release, she explained, “As data center development threatens to hike up my utility bills, deplete our natural resources and create uncertainty for New Yorkers, it’s my responsibility to take action and lead.”
Hochul noted that she wants the state to lead the way in data center regulations. She said, “New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”
The order comes after the New York legislature passed The Responsible Data Center Development Act bill in June that would impose a year-long pause on permits for data centers. The bill has not been signed into law by the governor.
The primary difference between the bill and the order is the size of data centers that are being paused. The bill imposes a ban on data centers over 20 megawatts, enough to power roughly 15,000 homes. The governor is raising the threshold to 50 MW in the Executive Order, the equivalent of enough power for about 40,000 homes.
The legislation and the order both require environmental reports to be completed, labor requirements to be implemented, study how facilities can generate clean power and set energy standards for data centers. However, the legislation directly mandates the state to do these things while the executive order is less binding.
According to the Washington Post, Hochul’s office said that the governor signed the executive order to move quickly while she reviews the legislation.
New York is the first state to implement a statewide moratorium. Moratorium proposals have been introduced in at least a dozen more states. In April, Maine Gov. Janet Mills (D) vetoed an 18-month large-scale data center moratorium.
