Gov. Hochul Signs Executive Order For One-Year Moratorium On Data Centers In New York
New York became the first state in the nation to impose a moratorium on the construction of data centers Tuesday, a striking setback for artificial intelligence companies that politicians once courted for investment but have now triggered public fears about energy prices and water use. Gov. Kathy Hochul (D) signed an executive order pausing environmental permits for large data centers for up to a year, saying the delay would give state officials time to craft rules to protect the electrical grid, the environment and communities where developers want to build.
“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. “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.”
The immediate practical impacts of the order are not clear: New York boasts fewer data centers than other states, including Virginia and Texas. But some planned projects in the state have already sparked local skirmishes, and the moratorium marks a major escalation in the battle between the tech industry and many politicians grappling with constituents’ concerns about the knock-on effects of the construction boom and economic disruption caused by the AI systems the facilities power.
Recent polling shows much of America would be more comfortable with a nuclear power plant in their town than a data center. Even communities that have relied on data centers to balance their local budgets for decades have turned on them, most notably in northern Virginia, the world’s epicenter for compute warehouses. The incentives tech companies once dangled to entice communities to approve their projects — including funding for local schools and promises to fund infrastructure projects — no longer impress. And officials across the country say they’re now looking to claw back tax giveaways, with Hochul also calling on lawmakers Tuesday to repeal sales tax exemptions for data centers.
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https://www.washingtonpost.com/technology/2026/07/14/new-york-becomes-first-state-impose-data-center-moratorium/
https://wapo.st/3T1qkht
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