New York Enacts First Statewide Moratorium on Data Centers
New York Governor Kathy Hochul has imposed a temporary statewide moratorium on data center projects consuming at least 50 megawatts. The Executive Order directs the State Department of Environmental Conservation to pause permit reviews while the Department of Public Service develops a Generic Environmental Impact Statement. This aims to establish standards for protecting ratepayers, environmental resources, and communities.
On July 14, 2026, New York Governor Kathy Hochul enacted Executive Order No. 62, imposing a temporary statewide moratorium on data center projects consuming 50 megawatts or more. This makes New York the first state to adopt such a measure for large-scale AI infrastructure, reflecting policy concerns over data centers' demands on electric grids, water supplies, and local communities.
The Executive Order directs the New York State Department of Environmental Conservation (DEC) to pause reviews of incomplete permit applications for qualifying data centers. Concurrently, the Department of Public Service (DPS) is tasked with developing a Generic Environmental Impact Statement (GEIS) under the State Environmental Quality Review Act (SEQRA) to evaluate potential environmental impacts including energy demand, water use, air quality, and noise levels. The DPS will solicit public comment on the GEIS.
Additionally, Empire State Development (ESD) is required to issue a Community Investment Framework by mid-September 2026 to guide communities in securing economic benefits and mitigating data center impacts. DPS will also form a Data Center Interconnection Working Group and explore a New York Grid Acceleration Fund, potentially financed by data center applicants, to improve grid infrastructure. The DEC is further directed to assess the need for new regulations regarding data centers' water demands.