New York has become the first state to impose a statewide moratorium on new data center construction, enacting a one-year pause on environmental permits for large facilities. Governor Kathy Hochul signed Executive Order No. 62 on July 14, 2026, directing the state Department of Environmental Conservation (DEC) to hold in abeyance any pending applications for discretionary permits that had not been deemed complete before the order's issuance. This moratorium applies to data centers consuming 50 megawatts (MW) or more, with exemptions for facilities supporting manufacturing, research, education, or medical care.
The executive order mandates the Department of Public Service (DPS) to develop a Generic Environmental Impact Statement (GEIS) to assess the potential environmental impacts of data center development. This includes evaluating effects on energy demand, water use and quality, and air quality. The state aims to use the GEIS process to establish a new regulatory framework with stronger standards for data center development. Once these standards are finalized, the moratorium will be lifted, allowing new projects to proceed if they comply with state and local regulations. The state also directed DPS to review and report on the practices and methodologies for interconnecting large loads, such as data centers, to the grid within 90 days.
Governor Hochul stated that the moratorium is necessary to protect ratepayers, the environment, and the energy grid, citing concerns about rising utility bills, depletion of natural resources, and strain on the energy grid. The order comes amid unprecedented growth in data center development driven by artificial intelligence and other computing operations, with nearly 12 gigawatts of data center load requests in the New York Independent System Operator interconnection queue as of May 2026.
In addition to environmental considerations, the state is developing a Community Investment Framework, led by Empire State Development (ESD), within 60 days. This framework will guide municipalities in securing community benefits from data center hosting, including mitigating environmental impacts, investing in local infrastructure, and establishing project labor agreements. The state also intends to ensure that data center developers contribute to grid improvements and clean energy procurement.
The legislation follows the passage of the Responsible Data Center Development Act, which also calls for a one-year moratorium and new regulations. However, the executive order allows for immediate action while legislative review continues. Some industry groups have expressed concern that the moratorium could deter investment and drive businesses to other states. The Associated General Contractors of New York State warned that halting permits for up to a year could cause projects to move permanently to states like Virginia, Texas, and Georgia.
The moratorium is designed to create a regulatory blueprint that could be adopted by other states facing similar concerns about the rapid expansion of data centers and their associated environmental and economic impacts.