Hochul Signs Nation's First State-Level Data Center Moratorium
New York Governor Kathy Hochul has signed an executive order imposing a one-year moratorium on new large-scale data center approvals (50 megawatts or above) across the state. This makes New York the first state to enact such a restriction, aiming to address concerns about utility bills, natural resource depletion, and to allow for an environmental impact review and reassessment of cost burdens. The executive order is in effect while the state reviews a broader legislative bill on data center development.
Governor Kathy Hochul signed an executive order imposing a moratorium on the construction of new large-scale data centers in New York, making it the first state to do so. The order pauses approvals for facilities with a power consumption capacity of 50 megawatts or above for up to one year, primarily targeting hyperscale operations for AI and cloud computing. Data centers serving hospitals, schools, research, and financial back-office functions are exempt.
Governor Hochul stated the action is necessary due to data center development's potential to increase utility bills, deplete natural resources, and create uncertainty for New Yorkers. During the moratorium, no new discretionary permits will be issued for qualifying projects. The order also shifts the cost burden of data center operations to the facilities themselves and mandates a generic environmental impact review by the Department of Public Service.
Assembly Speaker Carl Heastie expressed hope that the executive order does not prelude a veto of the Legislature's broader omnibus data center bill, which proposes a stricter 20-megawatt threshold and additional provisions. State Senator Kristen Gonzalez, who authored a similar moratorium bill, welcomed the executive order, while Republican Assemblyman Scott Gray warned it could deter investment, though he remained optimistic it might signal Hochul's rejection of the omnibus bill's more stringent requirements, such as a 90% renewable energy mandate. Environmental group Earthjustice plans to monitor the order's implementation while continuing to push for the legislative package, and technology industry groups have condemned the move. Hochul indicated she needs time to assess the omnibus bill's viability before making a final decision.