Governor Kathy Hochul signed an executive order establishing a one-year moratorium on environmental permits for new, large-scale data centers. New York is the first state to enact such a ban. The order specifically applies to facilities consuming 50 megawatts or more.
State officials will use the pause to develop regulations managing impacts on the electrical grid, environment, and resident utility rates. This move addresses the massive power demands driven by the expanding artificial intelligence sector.
The moratorium follows growing local opposition to proposed tech projects. This action creates uncertainty for utility providers planning for significant load growth and may influence how other states approach the data center construction boom.