New York Governor Kathy Hochul has signed an executive order establishing what her office describes as the nation’s first statewide moratorium on new hyperscale data centers. The order temporarily halts the issuance of state environmental permits for up to one year for these large-scale digital infrastructure projects, with the stated goal of allowing the state to design a more robust regulatory framework.
According to the governor’s office, the pause is intended to support the development of standards that protect utility ratepayers, the environment, the state’s energy grid, and surrounding communities. The action reflects growing concern from state leadership that continued hyperscale data center expansion could raise electricity costs, strain natural resources and inject additional uncertainty into local infrastructure planning.
Governor Hochul framed the move as a proactive step to rebalance the benefits and costs of digital infrastructure growth. She said that as data center development risks higher utility bills and resource depletion, it is her responsibility to act and lead. Hochul added that New York aims to set the strongest national standards for data center development so that when companies benefit from locating in the state, residents share in those benefits.
The executive order has drawn opposition from at least one prominent industry group. Carlo A. Scissura, president and CEO of the New York Building Congress, issued a statement criticizing the moratorium. He argued that a blanket halt on new hyperscale data centers will harm the state’s economy and workforce and weaken New York’s competitive position in emerging industries. Scissura characterized the order as the wrong tool for addressing what he called a real-world problem that instead requires careful, targeted policy work.
The New York order follows a similar debate earlier in the year in another state. The Maine Legislature had passed what would have been the first statewide moratorium on data center development, but that measure ultimately did not take effect after Governor Janet Mills vetoed it. With Maine stepping back from a blanket pause, New York’s action now stands out as the first such statewide restriction on hyperscale data center growth.
