New York won't build big data centers for a year as it weighs energy and
climate risks
[July 15, 2026] By
ANTHONY IZAGUIRRE
NEW YORK (AP) — No large data centers can be built in New York for up to
a year as the state creates rules to protect the environment and its
energy grid from the power-hungry facilities fueling artificial
intelligence.
Gov. Kathy Hochul signed an executive order Tuesday imposing the
country's first statewide moratorium on hyperscale data centers, which
house thousands of computer servers and require massive amounts of
energy and a steady supply of water to keep cool.
The move pushes the state into a raging debate over how to regulate the
AI industry, as concerns over rising electric bills and environmental
risks collide with a desire to stimulate local economies and foster the
U.S. tech sector.
“The bottom line is that progress shouldn't arrive with a higher utility
bill, deleted water supply or noise pollution, so we have no choice but
to address these challenges created by these massive facilities,” Hochul
said at a celebratory signing ceremony in Brooklyn.
President Donald Trump has warned states not to slap regulations on the
AI industry, echoing tech companies in arguing such moves hamper job
growth and cede ground to China in a race to lead in the rapidly growing
field.
Earlier this year, Maine seemed poised to establish a similar
moratorium. But the measure was vetoed by Democratic Gov. Janet Mills
because it would have blocked a proposed data center in a town that has
struggled after a mill closed.
Moratoriums have been proposed in at least a dozen states but have not
gotten far, though some counties and municipalities have imposed their
own temporary bans.
New York's executive order pauses state permitting for new large data
centers and directs state regulators to create standards that address
environmental impacts, energy demand, water usage and other factors, the
governor’s office said.
Dan Diorio of the Data Center Coalition, a trade association, said the
moratorium “will ensure that those investments, jobs, and economic
activity flow elsewhere rather than to New York — with impacts far
beyond the data center industry.”
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New York Governor Kathy Hochul participates in a ribbon cutting
ceremony at the new JPMorgan Chase offices in New York, Oct. 21,
2025. (AP Photo/Seth Wenig, File)
 The decision in New York also
carries political significance for Hochul's reelection campaign and
the state's tight congressional races this fall, as Democrats move
to address affordability concerns over high utility bills. In
addition, the governor this year softened New York's ambitious goals
to reduce greenhouse gases, citing rising energy costs for
consumers.
Hochul’s Republican opponent in the governor’s race, Nassau County
Executive Bruce Blakeman, opposes a statewide moratorium and says
local governments should be allowed to strike deals with tech
companies for data center projects that promise enough economic
benefits.
In a statement Tuesday, Blakeman said the governor “doesn’t work
with local governments and business leaders to figure out how to get
things done,” while pledging to “modernize our economy to bring
costs down and create good jobs.”
The state Legislature this year approved its own moratorium bill,
but Hochul's office described the legislation as complex and said it
needed additional work. Instead, the governor opted for an executive
order that would take effect immediately.
State Sen. Kristen Gonzalez, a Democrat who sponsored the
legislation, joined the governor during the signing ceremony. “If
Big Tech is coming onto our turf, it should be on our terms,” she
said.
New York, at this stage, has not been a destination for the largest
hyperscale data centers.
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