New York Lawmakers Pass One-Year Ban on New Data Centers

Jun 5, 2026

New York State legislature passed a one-year moratorium on new large data centers defined as having at least 20 megawatts peak demand, which would be the first statewide ban of its kind if signed. The New York Independent System Operator is currently reviewing 24 data center proposals totaling over 9,000 megawatts. Governor Kathy Hochul has until December 2026 to decide whether to sign or veto the legislation.

New York data center moratorium

▪The New York data center moratorium defines large data centers as having a peak demand of at least 20 megawatts.
▪The New York data center moratorium is a shorter moratorium than the three-year proposal that was previously introduced.
▪Lauren Feiner is a senior policy reporter at The Verge covering the intersection of Silicon Valley and Capitol Hill.
▪The New York State legislature passed a one-year moratorium on new large data centers.
▪The New York data center moratorium would be the first statewide ban of its kind if signed into law.
▪Lauren Feiner spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform.

Environmental impact assessment requirements

▪Lawmakers behind the New York data center moratorium say the moratorium is meant to give policymakers time to understand the impact of large data centers on the environment and energy prices.
▪The New York data center moratorium requires companies planning to build large data centers to hold and fund a public hearing at least three months before gaining approval for the project.
▪The New York data center moratorium directs the state's environmental agency to create an impact report assessing the amount of electricity, water, and land that data centers use, and the pollution they create.

Public opposition to data centers

▪The New York Independent System Operator is currently reviewing 24 data center proposals totaling over 9,000 megawatts.
▪Surveys show that most Americans oppose the idea of data centers in their communities.
▪Heated public meetings across the country have shown data centers to be a galvanizing issue across the political spectrum.
▪A proposed 180 megawatt data center project in Albany has drawn concerns from residents.

Industry pushback on ban

▪Stacey Sikes is acting president and CEO of the Long Island Association.
▪Stacey Sikes said the New York data center moratorium would overall be damaging to the state's economy because having a blanket moratorium instead of looking at it on a case by case basis would not allow the state to move forward on a data center project that would actually be helpful to the economy.

Governor Hochul decision timeline

▪Kristin Devoe said Governor Kathy Hochul will review the New York data center moratorium bill.
▪Kristin Devoe is a spokesperson for Governor Kathy Hochul.
▪Governor Kathy Hochul has not said whether she will sign the New York data center moratorium.
▪Governor Kathy Hochul has until December 2026 to decide whether to sign or veto the New York data center moratorium.

Perspective of Business groups (Long Island Association)

▪Stacey Sikes of the Long Island Association argues a blanket moratorium prevents New York from approving data center projects that could benefit the state's economy.