On Tuesday, July 14th, 2026, New York Governor Kathy Hochul signed an executive order instituting a one-year moratorium on new environmental permits for hyperscale data centers that consume or can consume 50 or more megawatts of energy. The moratorium aims to give state lawmakers time to "build a nation-leading regulatory framework" to manage data center development, which Hochul says "threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers."

The order tasks the Department of Public Service with examining the impact of data centers on New York's electric grid, including factors such as energy demand, water use and quality, air quality, disproportionate impacts on disadvantaged communities, and noise levels. Until the department completes its environmental impact statement, it is directed to hold all applications for the construction or expansion of any pending data centers.

Additionally, the order directs Empire State Development, the state's economic development agency, to assist local governments in analyzing and attaining economic benefits from prospective developers by drafting a Community Investment Framework. This framework will include guidance for creating and maintaining a community investment fund financed by data center developers or operators to support projects related to energy affordability, childcare, school programming, or public infrastructure. It also provides unions a role in influencing hiring and wage negotiations for data center developments.

Data centers may also be required to fund new energy generation consistent with New York's clean energy goals. Operators would need to comply with the state's Clean Energy Standard, which mandates that 70 percent of electricity come from renewable sources by 2030. The state has set an ambitious target of 100 percent zero-emission electricity by 2040, although officials acknowledge this goal is unlikely to be met.

New York currently hosts 148 data centers, with six more in planning stages as of February, according to the Pew Research Center. Public opposition is significant; a March Gallup poll found that 71 percent of Americans oppose constructing data centers in their communities.

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