New York Becomes First U.S. State to Impose Moratorium on Large Data Centers

Jul 14, 2026

On July 14, 2026, New York became the first state to freeze large data center construction, with Governor Kathy Hochul pausing permits for facilities using 50 megawatts or more for up to a year. The moratorium aims to protect the power grid and utility rates while establishing environmental standards. This reflects a national backlash against AI infrastructure, which saw over $130 billion in projects blocked or delayed in early 2026 due to massive energy and water demands.

New York and local data center moratoria

▪The Laurens County Council in South Carolina considered Ordinance 1012 on July 13, 2026, to impose a temporary 12-month moratorium on data center development permits.
▪New York Governor Kathy Hochul signed an executive order on July 14, 2026, imposing a one-year moratorium on environmental permits for new data centers using 50 megawatts or more of power.
▪New York's moratorium directs state officials to develop a Generic Environmental Impact Statement to establish consistent standards for future data center development.

Data center resource demands

▪As of May 2026, there were more than 12 gigawatts of large energy-using loads, including data centers, waiting to connect to New York's electrical grid.
▪Hyperscale data centers require massive amounts of electricity, land, and millions of gallons of water for cooling systems to run advanced computing systems.

Infrastructure impact concerns

▪A draft environmental impact statement from May 2025 estimated that emissions damages from existing crypto mining facilities in New York could reach $10.6 billion between 2024 and 2050.
▪Communities and officials oppose large-scale data centers due to concerns that their high energy demands will increase residential utility bills and strain local power grids.

Nationwide project opposition

▪More than $130 billion in proposed artificial intelligence data center projects were blocked or delayed across the United States during the first three months of 2026.
▪A Gallup survey from May 2026 found that 71% of Americans oppose having artificial intelligence data centers built in their communities.

State legislative responses

▪Maine's legislature passed a data center moratorium, but Democratic Governor Janet Mills vetoed the bill in April 2026 because it lacked a carveout for an active project.
▪Lawmakers in the United States introduced over 300 data center-related bills in the first six weeks of 2026, with at least 14 states considering temporary bans.
▪The New York State Legislature passed the Responsible Data Center Development Act in June 2026, proposing a one-year moratorium on facilities consuming 20 megawatts or more.

Big Tech project withdrawals

▪Google withdrew a planned $1 billion data center project near Indianapolis, Indiana, ahead of a local vote expected to reject the proposal.
▪Local officials in Tucson, Arizona, opposed a proposed $3.6 billion Amazon data center campus due to concerns over water and energy demands.