New York Gov. Kathy Hochul signed an executive order Tuesday imposing a one-year moratorium on construction of large new data centers, making New York the first state in the country to enact such a ban.
The order prohibits state agencies from approving discretionary permits for any data center drawing 50 megawatts or more of electricity, according to Reuters. It does not affect smaller facilities serving hospitals, universities, or back-office financial operations. Projects that already hold all required permits will not be delayed, but those still awaiting approvals will be placed on hold, according to the governor's office.
"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 statement.
The state's Department of Environmental Conservation has been tasked with producing a Generic Environmental Impact Statement that would set uniform benchmarks for how data centers are built and run, covering their potential effects on water supplies, air quality, and electricity demand. The ban will be lifted once those standards are finalized, but will last no more than one year. Hochul also said she would pursue legislation to repeal sales tax exemptions for large data centers.
New York's state legislature passed a broader bill last month that would cover data centers using 20 megawatts or more — a wider scope than the executive order — but Hochul has not yet signed it. Her office described the bill as complicated and said it would take time to work through with legislators, according to Reuters.
No other state has a statewide moratorium currently in force. Maine Governor Janet Mills vetoed a similar bill in April.
The backlash against data centers has become a heated political issue across the country, driven largely by rising electricity costs and water consumption tied to the facilities. Electricity bills near major data center hubs have climbed as much as 267% over five years, and data centers now account for 4% to 5% of all U.S. electricity consumption. At least 11 states have active moratorium bills, and more than 150 pieces of energy-related legislation have been considered across statehouses in 2026 alone.
New York currently has more than 130 data centers, according to Reuters, and as of May, more than 12 gigawatts of very large energy-using loads — including data centers — were in line to connect to the state's grid, according to the New York independent grid operator. Among all states, New York ranks eighth for the cost of residential electricity, based on figures from the U.S. Energy Department.
Hochul, who is seeking re-election in November, said the state will provide localities with a framework for negotiating with data center companies once the moratorium is lifted, including guidance on pushing for local infrastructure investments and union labor commitments.