New York Becomes First US State to Impose Year-Long Moratorium on Large Data Centers

Governor Kathy Hochul signs an executive order halting approvals for data centers over 50MW for up to one year, citing environmental and energy concerns.

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New York Governor Kathy Hochul signed an executive order on Tuesday that halts state approval of data centers with a power demand of 50 megawatts or more, making New York the first US state to enact such a moratorium. The order takes effect immediately and applies for up to one year, though projects that already hold permits are exempt.

Hochul, a pro-business moderate who had previously argued that decisions on data center bans should be made at the local level, reversed course amid growing public concern over the infrastructure's environmental footprint. "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," she stated.

The executive order is distinct from the Responsible Data Center Development Act, which was passed by the state legislature. That bill would also impose a one-year permit ban but additionally mandates energy efficiency targets and community benefit agreements. Hochul has not yet signed that legislation but is reviewing it. "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," she said.

New York's action comes amid a wave of similar efforts across the country. Maine's legislature approved a moratorium, but Governor Janet Mills vetoed it. Several other states are considering legislation, including Washington, Wisconsin, Illinois, Pennsylvania, New Hampshire, Connecticut, and South Carolina. At the local level, cities such as Seattle have already enacted their own bans.

On the federal stage, Senators Bernie Sanders and Alexandria Ocasio-Cortez have introduced a bill that would impose a nationwide construction halt. However, former President Donald Trump has argued that such moratoriums could undermine US competitiveness in artificial intelligence, making Republican support for the federal measure unlikely.