New York State Imposes Temporary Ban on Large Data Center Construction

For the first time in the United States, the government of New York State has temporarily halted the construction and expansion of large data centers. According to the Associated Press, the decision is being viewed as an important step toward conserving energy resources and ensuring environmental safety. Ixbt.com reports .

Under Executive Order 62, signed by Governor Kathy Hochul, reviews of large data center projects consuming at least 50 megawatts of electricity have been temporarily suspended. The restriction will remain in effect until a statewide environmental review is completed, but for no longer than one year.

Environmental Review and Scope of the New Restrictions

The moratorium applies only to projects that had not been fully approved by the New York State Department of Environmental Conservation by July 14. Permits previously issued by local authorities and completed government procedures remain valid.

The document also specifies several exceptions. In particular, facilities specializing in manufacturing, scientific research, education and healthcare, as well as projects operated by the Empire AI consortium, are not covered by the restriction. This will ensure that important scientific, social and technological initiatives can continue without interruption.

Heavy Pressure on the Power System

As part of the environmental assessment, the New York State Department of Public Service (DPS) will conduct an in-depth analysis of large data centers’ electricity consumption, water resources, air quality and impact on local communities. Experts will also examine how to distribute the costs of modernizing grid infrastructure, creating new capacity and building energy storage systems.

According to the data, the total announced capacity of data center projects awaiting connection to the power system is approximately 12 gigawatts. Most notably, more than 8 gigawatts of that capacity was added in 2025 alone, indicating a sharp increase in the load placed on the grid.

The government is also working to eliminate tax incentives for the largest data centers and develop mechanisms requiring them to make additional investments in local community development.