New York has become the first U.S. state to pause new data center construction after Governor Kathy Hochul signed an executive order temporarily blocking permits for large-scale projects. The order applies to data centers of 50 megawatts or larger, potentially affecting more than a dozen planned developments, with the state’s Department of Environmental Conservation withholding any permits not already finalized.
Hochul said data centers should not come at the cost of higher utility bills, strained water supplies, or noise pollution, and stressed that such projects would remain subject to local zoning and approval processes. The moratorium is expected to last about a year while the state completes an environmental review, and officials are also considering requiring data centers to contribute to a grid-support fund and limiting their tax benefits.
The order comes as concern grows nationally over AI’s infrastructure demands, with research showing limited public enthusiasm about AI’s economic and workplace impact. New York’s legislature is separately advancing bills that would impose broader moratoriums on data center construction.
The move follows rising public pushback over AI-driven data center growth straining electrical grids and regional resources, and could put New York at odds with the Trump administration, which has favored faster data center development nationally.
