New York Governor Hochul Enacts Yearlong Moratorium on Large Data Centers

New York Governor Kathy Hochul announced a yearlong moratorium on new energy-intensive data centers of at least 50 megawatts, the first such ban in the United States. The executive order halts environmental permits for up to a year while state agencies develop regulations addressing water use, air quality, grid strain, and energy costs. Hochul cited rising utility bills, resource depletion, and uncertainty for New Yorkers as reasons for the pause. The order directs the Department of Public Service to create a generic environmental impact statement for data center projects and tasks Empire State Development with a framework for community benefit agreements. Hochul also indicated she will pursue legislation to repeal sales tax exemptions for data centers. The moratorium follows a legislative bill passed this year that would impose a similar ban on facilities of at least 20 megawatts, which Hochul is reviewing. The action responds to growing concerns over data center proliferation driven by AI and Bitcoin mining, with dozens of projects seeking grid connections in New York.