New York Enacting Nation’s First Statewide Data Center Moratorium
Gov. Kathy Hochul announces one-year pause on facilities with at least 50 megawatts.
By Andrew Coen July 14, 2026 9:16 am
reprints
Commercial real estate’s booming data center industry is suddenly not in an Empire State of mind.
New York Gov. Kathy Hochul is slated to sign an executive order Tuesday morning enacting the nation’s first statewide moratorium on construction of the large-scale data center facilities that have been powering the country’s increased usage of AI. The move, which includes a one-year ban on new data centers with at least 50 megawatts, also directs state regulators to create new standards for addressing environmental, energy and water-use impacts.
“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,” Hochul said in a statement.
Hochul’s order comes five weeks after the New York State Legislature passed a bill that would also impose a one-year data center moratorium in an attempt to create more guardrails.
Maine lawmakers attempted a similar data center moratorium this past spring before the legislation was vetoed by Gov. Janet Mills.
Andrew Coen can be reached at acoen@commercialobserver.com.
