New York became the first US state to impose a one-year moratorium on new datacenters used to power artificial intelligence products on Tuesday, July 14, 2026. Governor Kathy Hochul, a Democrat, issued an executive order at a mid-morning press conference mandating a statewide pause on permitting for “hyperscale” datacenters—those with electrical capacity exceeding 50 megawatts.

Hochul stated, “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.” The moratorium will remain in place for up to one year while the state develops stringent standards addressing environmental impacts, energy demand, water usage, noise pollution, and land disruption, with particular focus on protecting the energy grid and water supply.

The move comes amid growing national opposition to datacenter projects, with nearly three-quarters of Americans opposing such facilities near their homes according to a Heatmap poll. A June poll by the Siena Research Institute found that 46% of New Yorkers support the moratorium, while 21% oppose it.

Governor Hochul also indicated that New York is exploring policies requiring hyperscale datacenters to either pay higher energy costs or generate their own power to help keep utility bills low for residents. She expects the regulatory framework to be completed within the year, after which the moratorium will be reviewed and potentially lifted.

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