On July 14, 2026, Governor Kathy Hochul signed Executive Order No. 62, imposing a temporary statewide moratorium on data center projects across New York.
The order makes New York the first state in the country to adopt a moratorium specifically targeting large-scale artificial intelligence infrastructure.
Among its key provisions, the Executive Order directs the Department of Environmental Conservation to pause its review of incomplete permit applications for data centers consuming at least 50 megawatts of energy.
The pause will remain in effect while the Department of Public Service develops a Generic Environmental Impact Statement, known as a GEIS, to assess potential data center impacts under the State Environmental Quality Review Act.
According to the Governor’s Office, the pause will allow New York to establish standards intended to protect ratepayers, environmental resources, and community interests before additional large-scale facilities move forward.
The GEIS will evaluate potential environmental effects of data center construction and operation, including impacts on energy demand, water use and quality, air quality, disadvantaged communities, and noise levels.
The moratorium does not apply to permits needed from local governments, nor to data centers primarily used for manufacturing, research, education, or the provision of medical care.
Empire State Development is required to issue a Community Investment Framework by mid-September 2026, providing guidance to communities on obtaining economic benefits and mitigating data center impacts.
The Department of Public Service must also form a Data Center Interconnection Working Group and consider measures such as investment in a New York Grid Acceleration Fund to improve grid infrastructure.
This effort builds on Governor Hochul’s Energize NY initiative, which will require data centers to pay more for their energy or supply their own energy to reduce costs for existing customers.
The Executive Order also directs the Department of Environmental Conservation to assess whether new or amended regulations are needed to address data centers’ water demands across the state.
The moratorium carries implications well beyond New York’s borders, as other states are already considering similar actions targeting data centre development and AI infrastructure expansion.
Texas enacted its own moratorium on August 3, 2026, pending a state audit, signalling that scrutiny of large-scale data centre projects is intensifying at the state level across the United States.
Companies with pending or planned data center projects should closely monitor New York’s implementation of Executive Order No. 62, provide public comment on the GEIS, and evaluate whether project schedules, permitting strategies, or facility locations warrant adjustment.
Data centre developers and operators should expect increased scrutiny of issues including electric demand, transmission capacity, water consumption, greenhouse gas emissions, noise, and community impacts going forward.