Hochul announces one-year statewide moratorium on new hyperscale data centers

Governor Kathy Hochul announced an executive order instituting a one-year moratorium on new hyperscale data centers across New York State while regulators develop a uniform environmental and community framework for future projects, the governor’s office said in a July 16, 2026 press release.

The order pauses discretionary state environmental permits for up to a year for data center proposals that are not already deemed complete, while the Public Service Commission (DPS) prepares a Generic Environmental Impact Statement (GEIS) to assess impacts including energy demand, water use and air quality. The moratorium will remain in place during development of the GEIS; once statewide standards are finalized, new projects may proceed if they meet the state standards and local zoning and approvals.

Empire State Development (ESD) has been directed to issue a Community Investment Framework (CIF) within 60 days to guide localities negotiating community benefits tied to large data center developments. The CIF is intended to help communities secure local infrastructure improvements, workforce and apprenticeship commitments, prevailing wages and other local investments.

The governor also directed DPS to consider creating a New York Grid Acceleration Fund that could require data centers to contribute to grid upgrades, procure new clean energy supplies, or support an insurance pool to reduce speculative load risks. Separately, Hochul said she will pursue legislation to repeal sales tax exemptions for very large data centers.

The announcement frames the pause as necessary to protect ratepayers, the environment and the state’s electric grid amid rapid demand growth driven by artificial intelligence and other computing needs. The administration said the policy will also ensure organized labor and local stakeholders have a seat at the table when negotiating benefits and standards for construction and operations.

State officials held a roundtable with lawmakers, municipal leaders and advocacy groups; participants named in the release included State Senator Kristen Gonzalez, Assemblymember Didi Barrett, Mayor Steve Noble (Kingston), Town Supervisor Cynthia Young (Malta), and representatives from organizations including Scenic Hudson, the Public Utilities Law Project (PULP), and CenterState Corporation for Economic Opportunity.

The state press release says separate proceedings will look at requiring data centers to pay more for their energy or supply their own, and that the Department of Public Service will consider requiring investments in customer-sited distributed energy resources, battery storage or other generation dedicated to data center operations.

According to the release, the moratorium and related actions are intended to last up to one year while the GEIS and CIF are developed; the administration said the public is encouraged to provide feedback on the CIF outline.

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