Overview
- Gov. Kathy Hochul signed an executive order on July 14 that halts state permitting for new hyperscale data centers that need roughly 50 megawatts or more while regulators complete a review of impacts.
- The order freezes issuance of state environmental approvals so the New York Department of Environmental Conservation, the state utility regulator, and Empire State Development can design standards covering power, water use, noise, and payments to protect ratepayers.
- Projects with completed permits remain exempt and existing data centers will continue to operate, so the move pauses new growth rather than closing facilities.
- The decision drew sharp criticism from President Trump and major New York business groups who say the pause risks shifting investment and jobs to states like Texas and Georgia, and some companies and investors reported negative market reactions.
- The moratorium sits inside a wider national backlash that includes dozens of local bans and federal grid warnings, and it could prompt developers to seek sites with cheaper power or lighter rules while states consider measures such as paying for grid upgrades or requiring private power arrangements.