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New York Governor Kathy Hochul signing an executive order to create the nation\u2019s first moratorium on new hyper-scale data centres (Susan Watts\/Office of Governor Kathy Hochul)<\/p>\nNew York Governor Kathy Hochul signing an executive order to create the nation\u2019s first moratorium on new hyper-scale data centres (Susan Watts\/Office of Governor Kathy Hochul)<\/p>\n
\nNew York has become the first US state to pause approvals of all new hyperscale data centres because of growing concerns over their use of energy and water.\n<\/p>\n
Governor Kathy Hochul signed<\/a> an executive order issuing the moratorium on data centres consuming 50MW or more of electricity on 14 July.<\/p>\n The order noted that as of May 2026, nearly 12GW of data centre load requests were in the state\u2019s queue, 8GW having entered the queue in 2025 alone.<\/p>\n 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.<\/p>\n \u201cNew York has always been at the forefront of innovation and change but we\u2019ve also always guaranteed that New Yorkers benefit,\u201d Hochul said<\/a>.<\/p>\n \u201cAs data centre development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it\u2019s my responsibility to take action and lead.<\/p>\n \u201cNew 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.\u201d<\/p>\n A year to assess their impact<\/p>\n The governor directed the Department of Public Service (DPS) to develop a \u201cgeneric environmental impact statement\u201d (GEIS) for data centres to ensure new ones coming online are being held to consistent standards. That\u2019s expected to take up to a year.<\/p>\n 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.<\/p>\n The governor also directed Empire State Development, a state economic development body, to issue a \u201ccommunity investment framework\u201d 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.<\/p>\n The governor also asked DPS to consider creating a New York Grid Acceleration Fund to require data centres to invest in the state\u2019s ageing grid infrastructure.<\/p>\n In May, polling organisation Gallup<\/a> 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.<\/p>\n