Kathy Hochul signs an executive order imposing a one-year moratorium on new large-scale data centers in New York State.
Kathy Hochul signed an executive order on Tuesday to pause the construction of new large-scale data centers requiring 50 megawatts or more of power for up to one year. New York is the first state in the nation to implement such a moratorium. The governor took action to prevent hyperscale AI data centers from overtaxing the state's power grid and driving up costs for local residents. The decision follows a period of rising electricity prices, with average residential rates climbing nearly 68 percent since 2019. While environmental leaders and many residents praised the move as a way to protect clean air and water, some critics argued the pause could hinder technological competition. Assemblyman Scott Gray noted that the moratorium may freeze investment and remove decision-making power from local communities. The administration announced that the pause will remain in effect until a comprehensive framework is developed to support municipalities and establish construction standards.