New York Gov. Kathy Hochul outlining her plans for a data center moratorium in a video released by her office. (Image via YouTube)

New York Gov. Kathy Hochul has signed an executive order calling for a one-year moratorium on new data center construction, becoming the first state to place a temporary ban on AI infrastructure development.

Hochul will pause state-level environmental permits for data center projects exceeding 50 megawatts for up to a year to provide time for her administration to develop a regulatory framework that protects ratepayers, the environment, the energy grid and communities across the state.

“This is a critical moment, and New York is going to take the time to get it right,” Hochul said in a speech in New York City.

“As data center 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,” Hochul said in a related press release. “New York will lead the way in creating the strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.”

Hochul chose to act through an executive order rather than signing The Responsible Data Center Development Act (A11560/S10642), a broader regulatory framework for large data centers that the New York Legislature passed on June 4, 2026.

It would establish new requirements governing permitting, electric service, environmental review, labor standards, energy efficiency, and community benefits for large data center projects.

The executive order differs from the bill in several important respects. It applies to data centers of 50 megawatts (MW) and larger, rather than the bill’s 20 MW threshold, and it relies on existing executive authority rather than creating the broader statutory framework contained in the legislation, including a new utility tariff.

One of the bill’s sponsors, State Senator Kristen Gonzalez, joined Hochul for the announcement in New York.

Here’s a video from Hochul announcing the moratorium.

Roughly 14 to 15 states have considered some type of data center moratorium in 2026, and dozens of counties and municipalities have adopted or debated temporary pauses while they develop new rules for siting large AI data centers.

Hochul is among a group of governors seeking to navigate the strong public pushback against data centers.

In Maine, Gov. Janet Mills vetoed a bill calling for a data center ban, calling it too restrictive.

In Virginia, Gov. Abigail Spanberger recently signed a state budget introducing new taxes on data center power usage. The tax may impose up to $1.2 billion in new taxes on the state’s huge data center sector over the next two years, and was part of a compromise with legislators calling for a complete repeal of Virginia’s data center incentives, which run through 2035.

New Jersey Gov. Mikie Sherrill has signed into law the Data Center Fair Share Act,

which creates a new ratepayer structure specifically for data centers, requiring them to pay for their own energy use and the grid infrastructure needed to serve them.

Hochul’s decision to use an executive order is likely to be noted by other governors facing pressure to act on data center growth, most notably Gov. Josh Shapiro in Pennsylvania, a key growth area for AI infrastructure.

Governors in two other huge data center markets, Texas and Illinois, are also balancing how to respond to public sentiment against data center growth.

Illinois Gov. Jay Pritzker announced a pause on new state tax incentive agreements after lawmakers failed to pass comprehensive legislation regulating data center growth.

In Texas, Gov. Greg Abbott was initially a strong supporter of data centers, but recently shifted gears and called for regulatory policy reviews and perhaps legislation next year.

Here’s a summary of the details of Executive Order 62, outlining the action items, responsible agencies, regulatory processes and timelines for completion:

A statewide environmental review.
The Department of Public Service (DPS) will prepare a statewide Generic Environmental Impact Statement examining the environmental effects of large data centers through a public process that includes hearings, public comment and consultation with other state agencies.

Pausing key environmental permits.
The Department of Environmental Conservation (DEC) will suspend processing of state permit applications for data centers of 50 megawatts or more until the environmental review is completed, unless those applications have already been completed.

Create a community benefits framework.
Empire State Development will publish a Community Investment Framework outlining best practices for community benefit agreements, infrastructure investments, workforce commitments and transparency to guide negotiations between developers and host communities.

Evaluate new grid funding mechanisms.
DPS will ensure data centers fund the electric infrastructure needed to serve them, including potential grid investment funds, clean energy resources, battery storage and ratepayer protections.

Establish an interconnection working group.
DPS will create a Data Center Interconnection Working Group to improve the process for connecting large electric loads, streamline interconnection planning and evaluate how infrastructure costs should be allocated. It will also review how transmission owners assess the impacts of large load.

Assess water withdrawal regulations.
The DEC is tasked with reviewing whether New York’s water withdrawal regulations adequately address large data centers, and will have a year to develop recommendations for changes to policies and reporting requirements.

Importantly, the executive order should have no immediate impact for data centers in New York City, including those supporting the financial sector.

Hochul’s order is most relevant for large hyperscale developments that have not yet completed the environmental review process.

It’s early to speculate about specific projects, but in coming weeks we will likely hear far more about the implications for pending developments.

As of May 2026, nearly 12 gigawatts of data center load requests are in the New York Independent System Operator interconnection queue, with more than eight gigawatts entering the queue in 2025 alone.