Governor Kathy Hochul signed an executive order issuing the moratorium on data centres consuming 50MW or more of electricity on 14 July.
The order noted that as of May 2026, nearly 12GW of data centre load requests were in the state’s queue, 8GW having entered the queue in 2025 alone.
The moratorium will be in place for up to a year, giving the state time to develop a regulatory framework that protects ratepayers, the environment, the energy grid and communities.
“New York has always been at the forefront of innovation and change but we’ve also always guaranteed that New Yorkers benefit,” Hochul said.
“As data centre development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead.
“New York will lead the way in creating the strongest standards in the nation for data centre development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”
A year to assess their impact
The governor directed the Department of Public Service (DPS) to develop a “generic environmental impact statement” (GEIS) for data centres to ensure new ones coming online are being held to consistent standards. That’s expected to take up to a year.
The state will use the GEIS to assess their effect on energy demand, water use and quality, and air quality. The moratorium will be lifted once the state finalises these standards.
The governor also directed Empire State Development, a state economic development body, to issue a “community investment framework” within 60 days. It will advise communities on how to negotiate with data centre developers over community benefits, including infrastructure improvements, child care investments and direct financial support.
The governor also asked DPS to consider creating a New York Grid Acceleration Fund to require data centres to invest in the state’s ageing grid infrastructure.
In May, polling organisation Gallup found that seven in 10 Americans oppose the construction of data centres for AI in their local area, with 48% saying they were strongly opposed. Barely a quarter said they favoured these projects.
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