{"slug": "new-york-a-state-without-nearly-any-data-centers-becomes-first-to-ban-their", "title": "New York, a state without nearly any data centers, becomes first to ban their construction", "summary": "New York Governor Kathy Hochul signed an executive order imposing the nation's first statewide moratorium on hyperscale data centers, halting new construction for up to a year while the state develops environmental and energy grid regulations. The move places New York at the center of a national debate over balancing AI industry growth with environmental and affordability concerns.", "body_md": "New York blocked the construction of any new large [data centers](https://apnews.com/article/ai-data-centers-environment-climate-footprint-a792f184a9f2833b5388dbae8b41ca95) for up to a year on Tuesday while the state creates rules to protect the environment and the energy grid from power-hungry facilities that fuel [artificial intelligence](https://apnews.com/article/data-centers-ai-artificial-intelligence-renewable-energy-7995717f506914fc181a07d32d1867a5).\n\nGov. [Kathy Hochul](https://apnews.com/hub/kathy-hochul) signed an executive order imposing the country’s first [statewide moratorium](https://apnews.com/article/data-center-moratoriums-maine-janet-mills-352ad4fbd531d905b9415258692b318f) on hyperscale data centers, which house thousands of computer servers and require massive amounts of energy and a steady supply of water to keep cool.\n\nThe move puts the state in the center of a [national debate](https://apnews.com/article/data-center-heat-wave-lowell-5607b4ea8ef9776b28268561060752a8) over [how to regulate](https://apnews.com/article/ai-data-centers-mayors-london-climate-week-37df5184ad4f28ea084082563182e1ea) the AI industry, as concerns over rising electric bills and [environmental risks](https://apnews.com/article/data-centers-ai-artificial-intelligence-renewable-energy-7995717f506914fc181a07d32d1867a5) collide with the need to stimulate local economies and foster the U.S. tech sector.\n\n“It’s my responsibility to take action and lead,” Hochul, a Democrat, said in a statement.\n\nIn effect, the executive order pauses state permitting for new large data centers and direct state regulators to create standards that address environmental impacts, energy demand, water usage and other factors, the governor’s office said.\n\nPresident [Donald Trump](https://apnews.com/hub/donald-trump) has [warned states](https://apnews.com/article/trump-artificial-intelligence-chatbots-ai-23a0e44ab05402ddfe9cdfd0bffa0ade) not to slap regulations on the AI industry, echoing tech companies in arguing such moves hamper job growth and cede ground to China in a race to lead in the rapidly growing field.\n\nEarlier this year, Maine [seemed poised](https://apnews.com/article/data-centers-moratoriums-maine-artificial-intelligence-ai-aa63ba087d5ad53ab0735893646e7357) to establish a similar moratorium. But the measure was vetoed by Democratic Gov. [Janet Mills](https://apnews.com/hub/janet-mills) because it would have blocked a proposed data center in a town that has struggled after a mill closed.\n\nMoratoriums have been proposed in at least a dozen states but have not gotten far, though some counties and municipalities have imposed their own temporary bans.\n\nThe decision in New York also carries political significance for Hochul’s reelection campaign and the state’s tight congressional races this fall, as Democrats move to address affordability concerns over high utility bills. In addition, the governor this year [softened New York’s ambitious goals](https://apnews.com/article/affordability-climate-change-clean-energy-goals-democrats-1780f09228246dee569c3b63d70bd014) to reduce greenhouse gases, citing rising energy costs for consumers.\n\nHochul’s Republican opponent in the governor’s race, Nassau County Executive Bruce Blakeman, opposes a statewide moratorium and says local governments should be allowed to strike deals with tech companies for data center projects that promise enough economic benefits.\n\nThe state Legislature this year approved its own moratorium bill, but Hochul’s office described the legislation as complex and said it needed additional work. Instead, the governor opted for an executive order that would take effect immediately.\n\nNew York, at this stage, has not been a destination for the biggest hyperscale data centers.\n\n**Subscribe to Fortune Gulf Brief**. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it.", "url": "https://wpnews.pro/news/new-york-a-state-without-nearly-any-data-centers-becomes-first-to-ban-their", "canonical_source": "https://fortune.com/2026/07/14/new-york-data-center-moratorium-hochul/", "published_at": "2026-07-14 15:29:40+00:00", "updated_at": "2026-07-14 16:06:25.661262+00:00", "lang": "en", "topics": ["ai-policy", "artificial-intelligence", "ai-infrastructure"], "entities": ["Kathy Hochul", "New York", "Donald Trump", "Janet Mills", "Bruce Blakeman", "Maine"], "alternates": {"html": "https://wpnews.pro/news/new-york-a-state-without-nearly-any-data-centers-becomes-first-to-ban-their", "markdown": "https://wpnews.pro/news/new-york-a-state-without-nearly-any-data-centers-becomes-first-to-ban-their.md", "text": "https://wpnews.pro/news/new-york-a-state-without-nearly-any-data-centers-becomes-first-to-ban-their.txt", "jsonld": "https://wpnews.pro/news/new-york-a-state-without-nearly-any-data-centers-becomes-first-to-ban-their.jsonld"}}