On July 14, 2026, New York Governor Kathy Hochul signed an executive order establishing the nation's first statewide moratorium on new large-scale data centers. According to the governor's office, the freeze will remain in effect for up to one year while the state implements an environmental and regulatory framework, though the executive order does not limit the moratorium to a year.
Overview of the Executive Order
Executive Order No. 62, which went into effect immediately, directs the New York Department of Environmental Conservation to temporarily pause discretionary permits for the construction or expansion of data centers while certain regulatory reviews and assessments are completed. Specifically, the order directs New York's Department of Public Service to develop a report examining the potential environmental impacts—including energy demand, water use and quality, air quality, disproportionate impacts on disadvantaged communities, and noise levels—of the construction and operation of data centers that consume or can consume 50 megawatts or more of electricity.
The moratorium will remain in effect until the state can use the report to finalize regulatory standards, a process that is expected to take up to one year, according to a press release issued by Governor Hochul's office. The order also directs state agencies to issue a Community Investment Framework, consider the development of a state electrical grid fund, form a working group to identify and resolve issues related to the interconnection of data centers, and assess water withdrawal program requirements.
Executive and Legislative Opposition to Data Center Development
New York's executive order represents the most significant statewide action to date against data center development in the United States. As of July 2026, more than 100 local municipalities across the country have adopted or considered data center moratoriums, and at least 14 states have introduced or considered statewide moratoriums or similar restrictions. Maine's legislature passed a statewide moratorium bill earlier this year, though it was vetoed by Governor Janet Mills. Other states and the White House have opted for nonbinding pledges under which data center developers agree not to shift costs onto local communities, among other agreements. President Trump has criticized Governor Hochul's executive order as harmful to the U.S. economy and, while legislation aimed at restricting data center development has been introduced in Congress, there does not appear to be widespread support for its passage.
Companies should closely monitor legislative and regulatory developments in states where they are considering data center operations, particularly as New York's moratorium may influence other states to pursue similar restrictions. Companies may also consider challenges to data center moratoriums.
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