New York Gov. Kathy Hochul Imposes Statewide Data Center Moratorium

News Clip1:04NTD News·NY·7/15/2026

New York Governor Kathy Hochul has imposed the country's first statewide moratorium on large data centers via an executive order. The action pauses state permits for new large-scale data centers, driven by concerns over increased utility costs and water depletion. State regulators are also directed to create standards for environmental impacts, energy demands, and water usage.

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Gov: New York Governor, state regulators

New York Governor Kathy Hochul has issued an executive order imposing a statewide moratorium on large data centers, marking the first such statewide action in the country.

The decision comes amidst increasing concerns that these facilities contribute to higher utility costs and deplete water supplies. The executive order effectively halts state permits for new large-scale data centers. Additionally, it directs state regulators to develop specific standards regarding the environmental impacts, energy demands, and water usage of these facilities.

Large data centers are essential infrastructure for artificial intelligence growth, housing thousands of computer servers that demand significant amounts of energy and a constant water supply for cooling. Lawmakers and regulators across numerous states are currently evaluating measures to mitigate the effects of data centers on electricity grids, utility bills, and local communities. A recent Reuters/Ipsos poll indicates that only one in three Americans support rapid data center construction, with most opposing such developments in their own localities.