New York Passes One-Year Moratorium on New Large Data Centers

New York State lawmakers passed a one-year moratorium on new large data centers on June 5, 2026. The legislation would halt permits for facilities with a peak demand of at least 20 megawatts if Democratic Governor Kathy Hochul signs it into law, marking the first statewide ban of its kind.

The bill directs the state Department of Environmental Conservation to produce an impact report examining data centers’ effects on electricity consumption, water use, land requirements, and pollution. It also mandates that developers of qualifying projects fund and conduct a public hearing at least three months before seeking approvals. Hochul has until December to decide on the measure.

Supporters say the pause will allow time to assess broader effects on the environment and electricity rates. The New York Independent System Operator is currently reviewing 24 data center proposals that would total more than 9,000 megawatts. A separate 180-megawatt project proposed for Albany has already drawn local opposition.

Industry groups have criticized the measure. Stacey Sikes, acting president and CEO of the Long Island Association, told Politico the moratorium would damage the state’s economy by imposing a blanket pause rather than case-by-case review. The bill represents a shortened version of an earlier three-year proposal.

Similar efforts have surfaced elsewhere. Maine’s legislature approved a moratorium extending into late 2027, but Governor Janet Mills vetoed it. National surveys indicate widespread public opposition to new data centers in local communities.

The New York legislation does not affect projects that have already received all required permits. Hochul’s office has not commented on whether she will sign the bill.