New York Governor Kathy Hochul signed an executive order on July 14, 2026, temporarily halting new state environmental permits for large data centers, making New York the first state in the nation to impose a statewide moratorium as concern grows over electricity costs and grid strain driven by the AI boom.
July 14, 2026 · New York State — Executive Order No. 62
New York Becomes the First State to Halt New Data Center Permits
Governor Kathy Hochul ordered a temporary pause on state environmental permits for hyperscale data centers — those drawing 50 megawatts or more — amid rising electricity costs and grid strain from the AI boom.
1st
statewide data center moratorium in the nation
50MW+
peak power threshold for affected hyperscale facilities
1yr
maximum pause while the state completes its impact study
Legislature vs. Governor: where the line was drawn
June's bill would have covered facilities at 20 MW; the executive order raised the bar to target only the largest projects.
20 MW
Bill S10642 / A11560
50 MW
Executive Order No. 62
How the pause works
PAUSE
DEC withholds SEQRA permits for 50 MW+ facilities
→
STUDY
State completes a Generic Environmental Impact Statement
→
REFORM
DPS reviews interconnection rules & grid-cost sharing (Case 26-E-0045)
Exempt: facilities that already hold permits or have begun construction.
Supporters
Environmental groups — including NYPIRG and Environmental Advocates NY — welcomed the order as protection for ratepayers, water, and the grid amid rising utility bills.
Critics
Industry representatives warned the pause could deter AI-related investment. Signed only days ago, its practical effects on developers remain to be seen.
A test case with national reach.
With opposition to data centers mounting and other states weighing similar measures, New York's approach could become a template for balancing the economic pull of AI infrastructure against the strain it places on power grids and communities.
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