New York has become the first US state to impose a moratorium on new large-scale data centers.<\/p>\n
The state imposed a one-year moratorium, following growing concerns about the impact of large-scale data centers on power costs, water supplies, and local communities.<\/p>\n
The moratorium was signed into law by New York Governor Kathy Hochul. The order will immediately pause environmental permits for projects with a capacity of 50MW or more, providing time for a requisite regulatory framework to be developed.<\/p>\n
The framework includes a “Generic Environmental Impact Statement,” which will assess data center energy demand, water use and quality, and air quality. In addition, the order will also provide – within 60 days – guidance for local entities to negotiate community benefits with companies.<\/p>\n
“As data center development threatens \u2060to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take \u200baction and lead,” said Hochul<\/p>\n
The order also directs the Department of Public Service to consider creating a New York Grid Acceleration Fund, which would require data centers to invest in the state’s aging grid infrastructure. Reports also indicate that Hochul will pursue legislation to repeal statewide sales tax exemptions for data centers.<\/p>\n
A proposed three-year moratorium<\/a> in New York is also making its way through the legislature after being introduced earlier in the year. Introduced by Democratic state senator Elizabeth Krueger on February 6, S.9144<\/a> would also require the state government to investigate and mitigate the environmental and utility rate impacts of data centers. According to the governor’s office, the decision was made to advance a one-year moratorium due to the apparent \u201ccomplicated\u201d nature of the Krueger-proposed bill.<\/p>\n While New York is the first to enforce a statewide moratorium, several other US states have seen similar legislation proposed. In Maine, a bill passed both houses that would have imposed an 18-month moratorium, but it was ultimately vetoed by the governor<\/a>.<\/p>\n Although moratoriums have long been used at the local level, officials in Minnesota<\/a>, Virginia<\/a>, New Hampshire<\/a>, Vermont<\/a>, Oklahoma<\/a>, Maryland<\/a>, Georgia<\/a>, Pennsylvania<\/a>, South Carolina<\/a>, Wisconsin<\/a>, and Michigan<\/a> have also introduced bills calling for state-wide bans on new developments.<\/p>\n A bill proposing a national moratorium was also introduced by US Senators Bernie Sanders and Alexandria Ocasio-Cortez in March 2026.<\/p>\n