New York Governor Orders Statewide Data Center Moratorium

News Clip5:40M and M Extra·NY·7/16/2026

New York Governor Kathy Hochul has announced a statewide moratorium on data center permits due to concerns about their massive power consumption and strain on the power grid. The governor emphasized the need for data centers to provide their own power or contribute to grid resiliency, and not receive tax breaks at the expense of New York residents.

moratoriumelectricitygovernment
Gov: New York State, Governor Kathy Hochul

New York Governor Kathy Hochul has ordered a temporary, statewide moratorium on the issuance of permits for new data centers in New York State. Speaking on the "M and M Extra" talk show, the Governor stated that her administration needs to "pause" to address the significant power drain data centers impose, noting that one company can consume as much electricity as 50,000 homes. This makes New York the first state to implement such a statewide permit moratorium.

Governor Hochul outlined her strategy, which includes requiring data center companies to provide their own power or pay a premium into the state's grid resiliency fund, ensuring that existing ratepayers do not bear the cost of increased energy demand. She also argued against giving tax breaks to these companies, stating that New Yorkers should not have their tax dollars subsidizing data center development. Hochul emphasized that while New York welcomes successful businesses, the state's values dictate that others must also succeed.

The talk show hosts, Mike Gallagher and Mark Davis, discussed the non-political nature of the data center debate, noting widespread concerns about their size, noise, environmental impact, and consumption of water and electricity. They acknowledged a divide between those who advocate for technological advancement, like Eric Erickson, who argues against