New York orders a pause on new large data centers: permits halted for up to a year

On July 14, 2026, New York Governor Kathy Hochul signed an executive order putting a statewide moratorium on data centers. For up to one year, the state will pause new environmental permits for proposed facilities larger than 50 megawatts.

That move makes New York the first U.S. state to stop major new data center construction on a statewide basis. Still, Hochul’s order is narrower than the Responsible Data Center Development Act passed by the New York Legislature in June 2026. That bill would apply to projects over 20 megawatts and would add environmental reports, public hearings, and renewable energy requirements. Hochul still hasn’t said whether she’ll sign it.

State officials say the pause is meant to address rising utility bills, strain on the grid, water use, air quality, and the state’s climate goals. The pressure is expected to grow as installed capacity rises from about 854.5 megawatts in 2025 to 1,154.2 by 2031. By 2035, data centers could account for 11% of all U.S. electricity demand.

While the pause is in effect, the New York Department of Public Service and Empire State Development will put together frameworks for impact, infrastructure funding, and community benefits.

If you follow energy policy or AI infrastructure, keep an eye on this. At least 20 communities in New York have already adopted local moratoriums. Virginia and Arizona are tightening their own rules too. Supporters point to spending, tax revenue, and jobs. Critics say the payoff doesn’t match the pitch. Hochul is also preparing a push to end sales tax breaks for large facilities.

You can follow the executive order and the rules that come next through New York State agencies.