Governor Kathy Hochul has ordered a one-year pause on new hyperscale data centers in New York while state agencies write environmental standards and community guidance, according to the Governoru2019s Office.
The order, signed July 14, 2026, does not permanently block new projects. Instead, it freezes certain state permitting actions while officials complete a broader review of how very large data centers affect the power grid, the environment and local communities.
What the pause does
Under the executive order, the Department of Environmental Conservation will not issue discretionary state environmental permits for new hyperscale data centers that are not already deemed complete. The pause can last up to one year.
The administration said the goal is to finish a Generic Environmental Impact Statement, or GEIS, before more projects move ahead. That review is meant to help define standards for future development.
Why state officials say they are doing it
The GEIS will examine potential environmental and infrastructure impacts from data center construction and operation. According to the state, that includes effects on energy demand, water use and quality, and air quality.
Officials are also looking at how large data centers might affect the electric system. The Department of Public Service has been directed to continue the Energize NY proceeding and develop the GEIS.
The state said DPS will also consider whether to create a New York Grid Acceleration Fund. The release said that fund could require data centers to help pay for grid upgrades, procure clean energy and possibly support an insurance pool tied to risks from speculative large electrical loads.
DPS will also consider approaches that could require data centers to fund dedicated clean generation, including customer-sited distributed energy resources and battery storage.
Community rules and local negotiations
Empire State Development has been directed to issue a Community Investment Framework within 60 days. The state said the framework is designed to help local governments negotiate community benefits from large-scale data center projects.
Those benefits could include local infrastructure improvements, child care investments, direct financial support, prevailing wage standards, project labor agreements, hiring priorities, apprenticeships and workforce development.
The Governoru2019s Office said an outline of the framework is available on ESDu2019s website and that the public is encouraged to submit feedback.
Tax policy and what comes next
Hochul also said she will pursue legislation to repeal sales tax exemptions for massive data centers statewide.
In a statement included in the release, Hochul said the pause will allow the state to build u201cthe strongest standards in the nation for data center development, ensuring that when companies succeed because of New York, New Yorkers succeed too.u201d
State Senator Kristen Gonzalez and Assemblymember Didi Barrett were quoted in support of the moratorium and the stateu2019s timeline for planning and community protections.
Once the GEIS is completed and standards are set, new projects may move forward if they comply with state rules and local approvals.
The announcement is statewide. Any effect in Buffalo and Western New York will depend on whether projects are proposed locally and on the results of future actions by DPS, DEC and Empire State Development.
