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New York Becomes First State to Impose Statewide Moratorium on Large Data Centers Amid AI Buildout

July 16, 2026 at 17:15 EDT

Infra & Chips
Policy & Regulation

New York Governor Kathy Hochul signed Executive Order No. 62 on July 14, 2026, temporarily halting state environmental permits for new or expanded hyperscale data centers consuming 50 megawatts or more of power — the first statewide moratorium of its kind in the United States.

July 14, 2026 · New York State

New York Freezes New Hyperscale Data Centers

Governor Kathy Hochul's Executive Order No. 62 pauses state environmental permits for new or expanded data centers drawing 50 MW or more — the first statewide moratorium of its kind in the United States.

1st

statewide data-center moratorium in the U.S.

1 yr

maximum length of the permit pause

50MW

power threshold triggering the freeze

existing facilities allowed to keep operating

HOW BIG IS A HYPERSCALE SITE?

Power draw of a single facility, in megawatts

50 MW

typical low end
= moratorium threshold

100 MW

typical high end

650+ MW

largest sites
= power for 100,000s of homes

What the order does

PAUSE

Hold new permits for 50 MW+ facilities

→

STUDY

Assess impact on grid, water & ratepayers

→

GUIDE

Build a review statement for future projects

SUPPORTERS SAY

Environmental advocates and community groups welcome the pause as a safeguard for power and water resources against unchecked expansion.

INDUSTRY WARNS

Developers fear chilled investment, lost jobs and projects shifting to other states — though no cancellations are confirmed yet.

Broader context: New York is also weighing whether to revisit sales-tax exemptions for these facilities. As the first statewide action of its kind, the moratorium could set a template for how other states balance AI's economic pull against local energy and environmental costs.

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