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# New York bans new AI data centers for a year
- URL: https://www.rapidreport.news/new-york-data-center-moratorium/
- Published: 2026-07-14T11:38:33.000Z
- Updated: 2026-07-14T11:38:33.000Z
- Description: New York will pause new hyperscale data center construction for up to a year under an executive order from Gov. Kathy Hochul — the first statewide moratorium in the US.
- Author: Max Hadley
- Tags: U.S. News

New York will block construction of new hyperscale data centers for up to a year, with Governor Kathy Hochul set to sign an executive order Tuesday imposing the first statewide moratorium of its kind in the US.

The order pauses state permitting for large data centers and directs regulators to draw up standards covering environmental impact, energy demand and water usage. The facilities, which power AI systems, house thousands of servers and consume massive amounts of electricity and cooling water.

![](https://storage.ghost.io/c/38/7b/387b3e88-7790-4c5e-97ae-1a3752209d62/content/images/2026/07/IMG_0251.jpeg)

(Photo by Spencer Platt/Getty Images)

“It’s my responsibility to take action and lead,” Hochul said in a statement, citing the threat of rising utility bills and depleted resources.

Tech companies argue such bans cost local jobs and cede ground to China in the AI race. Moratoriums have been floated in at least a dozen states without success — Maine’s Democratic governor vetoed a similar measure this year over a data center project in a struggling mill town.