‘Hyperscale’ data centers get put on pause in New York in a historic move

New York Governor Kathy Hochul signed an executive order imposing a one-year moratorium on construction permits for hyperscale data centers, making New York the first state to do so. The order targets facilities using at least 50 megawatts of power, aiming to address environmental concerns and rising utility costs. Hochul plans to lift the moratorium after a Generic Environmental Impact Statement is completed.

New York has made history as the first state to issue a moratorium on data centers. On Tuesday, Governor Kathy Hochul is set to sign an executive order that would halt construction permits for hyperscale data centers, multiple media outlets reported. According to the New York Times https://www.nytimes.com/2026/07/14/nyregion/new-york-data-center-moratorium-hochul.html , the order would apply to “so-called hyperscale” data centers, any locations that use at least 50 megawatts of power to function. The term hyperscaler is often applied to large tech companies like Amazon, Google, and Meta, which have aggressively been building out AI https://www.fastcompany.com/section/artificial-intelligence infrastructure. The moratorium will go into effect immediately and last for up to a year. In the interim, Hochul is looking to state officials to develop a Generic Environmental Impact Statement GEIS , according to Reuters https://www.reuters.com/world/new-york-becomes-first-state-impose-data-center-moratorium-2026-07-14/ . The GEIS will focus on holding all new data centers to the same standards and the environmental impact of these developments. “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 shared with Politico https://www.politico.com/news/2026/07/14/hochul-to-approve-nations-first-state-level-data-center-pause-00995561 . Hochul plans to lift the moratorium once the GEIS is completed. Fast Company has reached out to Hochul’s office for more information. We will update this post if we hear back. The news comes just over a month after New York’s state legislature passed the Responsible Data Center Development Act https://www.nysenate.gov/legislation/bills/2025/S10642 , which would put a one-year moratorium on permits for data centers exceeding 20 megawatts of power. It also includes policies such as renewable energy goals for data centers and separate water and electricity rates for them. Hochul is still considering whether to sign the bill, with her administration telling the New York Times that the order is for the sake of speed as she reviews the former. Hochul is up for reelection in November, which could impact the timeline and effectiveness of the moratorium. Her opponent, Nassau County executive Bruce Blakeman, is against a statewide moratorium, AP reports https://apnews.com/article/new-york-data-centers-moratorium-ai-c1e05b74208a6c570eec7c658ac8f187 . The issue has emerged more broadly as a political flashpoint as community opposition https://www.fastcompany.com/91444129/data-centers-surge-ai-boom-protests to data center projects has grown over the last year. Moratoriums have been proposed in a number of states, but none have made it into law. In April, Maine Governor Janet Mills vetoed a similar moratorium https://www.maine.gov/governor/mills/news/governor-mills-announces-decision-ld-307-2026-04-24 due to concerns about jobs in the town of Jay. The area has spent two years working on plans for a $550 million data center at the site of a mill that closed in 2023—a move Mills hopes will bring investment and jobs back to the town.