The New York governor’s office announced on July 14, 2026, that Governor Kathy Hochul has signed an executive order establishing the state’s first moratorium on new hyperscale data centers while state agencies develop a uniform regulatory framework, the office said in a Spanish‑language release.
What the moratorium does
According to the release, the executive order temporarily suspends the issuance of certain state environmental permits for new hyperscale data centers for up to one year while the state prepares a Generic Environmental Impact Statement (GEIS). The GEIS — to be prepared by the State Department of Environmental Conservation (DEC) — will evaluate potential statewide impacts of data center construction and operation, including effects on electricity demand, water use and quality, and air quality. The moratorium will remain in place during the GEIS process; the DEC will not issue discretionary permits that are not already complete, the release says. Once the state finalizes the GEIS and related standards, new projects may proceed if they meet state regulations and applicable local approvals.
Community investment and energy requirements
The release says Empire State Development (ESD) has been directed to issue a Community Investment Framework (CIF) within 60 days. The CIF is described as guidance to help localities negotiate community benefits for large data‑center proposals — for example, infrastructure improvements, childcare support, direct community payments, union participation, prevailing‑wage and project‑labor standards, local hiring, and workforce development.
The governor also directed the Public Service Commission / Department of Public Service (DPS) work on measures to ensure data centers pay for their energy use or supply their own energy, an initiative the release refers to as “Energize NY.” The DPS is also asked to consider creating a New York Grid Acceleration Fund to require data centers to invest in grid upgrades, support clean energy supplies, and contribute to reserve or insurance funds to limit ratepayer impacts. The release says the DPS will evaluate requiring data centers to finance new clean generation or on‑site resources such as distributed energy and battery storage.
Taxes and legislative action
The release says Governor Hochul is also pushing legislation to eliminate sales tax exemptions for large data centers statewide.
Attribution and context
The announcement was distributed by the Governor’s Office in a Spanish translation. The release frames the actions as a response to rapid growth in proposals for hyperscale data centers driven by artificial intelligence and other computing demand, and cites concerns about impacts on utilities, natural resources and household energy bills. The release includes statements attributed to Governor Hochul and to state lawmakers supporting the moratorium and the approach.
Because the order and related documents are statewide actions, communities across Western New York should expect the decision to affect how new hyperscale data‑center proposals are reviewed and negotiated at the state and local level.
Sources: Spanish‑language release from the Office of Governor Kathy Hochul (press office), July 14, 2026.
