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Applications deemed complete before July 14 are not affected.Local government permits fall outside the order.Facilities used primarily for manufacturing, academic research, quantum research, biomedical research, education, or medical care are also excluded from the moratorium.“As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it’s my responsibility to take action and lead,” Governor Kathy Hochul said.Hochul also said she would pursue legislation to repeal sales tax exemptions for large data centres.State reviews environmental and grid requirementsHochul directed state agencies to prepare a Generic Environmental Impact Statement covering data centre construction and operations.
The moratorium will end once the state completes the review and submits its final environmental findings, subject to the order’s maximum duration of up to one year.The process will include a public hearing and a public comment period.The review will examine electricity demand, water use and quality, air quality, noise, and effects on disadvantaged communities.The executive order said New York’s existing regulatory framework does not fully address the scale of water use and treatment associated with some data centres.
State agencies will also assess potential effects on aquifers, surface water, wastewater systems, and other public infrastructure.Nearly 12GW of proposed data centre load was in the New York Independent System Operator’s connection queue as of May, according to the executive order.More than 8GW entered the queue during 2025.The queue records proposed electricity demand rather than operating capacity, and projects can be delayed, resized, or withdrawn before they begin drawing power.NYISO said potential demand from data centres and other large electricity users has widened the range of outcomes considered in its system planning.
The grid operator has included more than 2.5GW of new demand from large-load projects in its forecasts, below the total capacity represented by current connection requests.The category includes data centres and other energy-intensive developments.Large projects can require new substations, transmission equipment, transformers, cables, and other utility infrastructure.The International Energy Agency said data centre developments are facing constraints involving grid connections, transformers, gas turbines, and regulatory approvals.
It estimates that new transmission lines can take four to eight years to build in advanced economies.Waiting times for critical grid equipment, including transformers and cables, have doubled over the past three years, according to the agency.The IEA also estimates that around 20% of planned data centre projects face delays unless grid constraints are addressed.Regulators examine costs and approval rulesNew York’s order said customers face financial exposure when utilities build infrastructure for projects that are later delayed, reduced, or cancelled.The state said grid upgrades serving large electricity users should follow a “beneficiary pays” approach rather than transfer costs to other utility customers.
The Department of Public Service will examine safeguards against stranded assets associated with projects that do not reach their expected electricity use.Regulators will also consider a Grid Acceleration Fund.Options listed in the order include upfront developer contributions, demand-response participation, new generation, distributed energy resources, battery storage, and an insurance mechanism covering project risk.These measures remain under review and are not current requirements.New York’s average residential electricity price reached 29.45 cents per kilowatt-hour in April 2026, up from 25.69 cents a year earlier, according to the US Energy Information Administration.
The federal data does not attribute the increase to data centres.New York’s action coincides with a federal review of how data centres, manufacturing plants, and other large electricity users connect to regional grids.In June, the Federal Energy Regulatory Commission ordered six regional grid operators, including NYISO, to justify their existing procedures or propose revised tariffs for large loads.The proceedings cover connection studies, transmission costs, cost shifting, onsite generation, flexible electricity use, and generation requirements for proposed loads.A separate proposal, the Responsible Data Center Development Act, would establish a one-year moratorium on certain permits and introduce longer-term requirements for large data centres.
The proposal uses a 20MW threshold for several provisions, giving it a broader scope than the executive order’s 50MW threshold.It would also require utilities to establish separate electricity and water service classifications for large data centres.Rates charged to those facilities would include the infrastructure and administrative costs associated with providing electricity and water.The bill would also require public hearings before subsequent permits are issued.
Its proposed environmental report would cover land use, electricity and water consumption, energy sources, pollution, electronic waste, public incentives, and effects on disadvantaged communities and recognised Indigenous nations.The bill remains active, and its provisions are not current law.Community and industry responsesThe executive order directs Empire State Development to publish a Community Investment Framework within 60 days.The guidance will cover infrastructure investment, electricity affordability, wastewater services, broadband, local hiring, apprenticeships, labour standards, and project reporting.It will guide negotiations between local authorities and developers rather than impose mandatory statewide compensation terms.A /Ipsos poll found that one-third of Americans approved of the pace of data centre construction.
Most respondents said they would oppose a facility being built in their own community.Data centre operator Digital Realty said the moratorium would probably direct investment outside New York.“We’re committed to working with policymakers on solutions that support responsible growth, but a one-year pause isn’t the right approach,” the company said.Doug Adams, chief executive of NTT Global Data Centers, said operators needed to provide clearer information about employment, investment, and resource use.“The heightened scrutiny reflects a desire for greater understanding of how data centres impact local communities,” Adams said.
“We welcome that conversation.”Dozens of state legislatures have introduced measures addressing data centre electricity costs, environmental effects, and local infrastructure.New York is the first to impose a statewide moratorium on large new facilities, while Maine Governor Janet Mills vetoed legislation in April that would have introduced a similar pause.See also: Data centre delays expose AI cloud power limitsWant to learn more about Cloud Computing from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.The comprehensive event is part of TechEx and is co-located with other leading technology events, click here for more information.Cloud Computing News is powered by TechForge Media.
Explore other upcoming enterprise technology events and webinars.About the Author Muhammad ZulhusniJournalist As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry.He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.Related Data centre delays expose AI cloud power limits8th July 2026 Common Hosting Mistakes That Can Limit Website Performance8th July 2026 How I Stopped Losing Notes While Turning Recordings Into Searchable Text8th July 2026 South Korea AI data centre push includes SK Telecom’s 15GW plan6th July 2026 Data centre delays expose AI cloud power limits8th July 2026 Common Hosting Mistakes That Can Limit Website Performance8th July 2026 How I Stopped Losing Notes While Turning Recordings Into Searchable Text8th July 2026 South Korea AI data centre push includes SK Telecom’s 15GW plan6th July 2026 Join our CommunitySubscribe now to get all our premium content and latest tech news delivered straight to your inbox Click here Popular Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20576 view(s)XaaS ModelsSoftLayer beefs up its bare metal offering, available on hourly basis 12900 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12650 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6751 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20576 view(s)XaaS ModelsSoftLayer beefs up its bare metal offering, available on hourly basis 12900 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12650 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6751 view(s) See all Latest View All Latest Sponsored Content8th July 2026How I Stopped Losing Notes While Turning Recordings Into Searchable Text AI & Cloud6th July 2026South Korea AI data centre push includes SK Telecom’s 15GW plan Cloud Computing2nd July 2026Meta weighs AI cloud business to sell excess compute capacity Sponsored Content8th July 2026How I Stopped Losing Notes While Turning Recordings Into Searchable Text AI & Cloud6th July 2026South Korea AI data centre push includes SK Telecom’s 15GW plan Cloud Computing2nd July 2026Meta weighs AI cloud business to sell excess compute capacity SubscribeAll our premium content and latest tech news delivered straight to your inbox Subscribe ExploreAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyReach Our AudienceAdvertisePost a Press ReleaseContact UsAdvertisePost a Press ReleaseContact UsCategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesOther PublicationsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsCloudTech News is part of TechForge SubscribeAll our premium content and latest tech news delivered straight to your inbox
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