As the Data Center Backlash Continues, New York Becomes the First State to Place a Moratorium on Their Construction

Not many people seem to be fans of data centers. In fact, more communities than ever are banding together to ensure that these often environmentally destructive constructions stay far away from their towns.

Now, the state of New York has taken things a step further by declaring a one-year moratorium on their development and construction. Governor Kathy Hochul signed an executive order on July 14, 2026, declaring the moratorium, making New York the first state to take this action.

As Hochul explained in the accompanying press conference, “We have no choice but to address the challenges created by these massive facilities.”

Why Are Data Centers So Unpopular?

Besides their link to artificial intelligence, which many people are also not fond of, these centers have been seen as a blight on the communities in which they are placed. Data centers require huge amounts of water and energy to operate, which can strain local water supplies and energy grids.

According to the Environmental and Energy Study Institute, data centers can require up to 5 million gallons of water per day, equivalent to the water use of a town with a population between 10,000 and 50,000 people. Plus, the amount of energy a data center sucks up results in the cost of electricity being higher for everyone else, resulting in more expensive utility bills for homeowners.

These centers can also pollute the surrounding areas through carbon emissions. xAI’s data center, the Colossus 2, allegedly has the potential to put out an amount of emissions that would bypass the threshold one must meet to get a federal clean air permit. Civil rights groups deemed this potential pollution harmful enough to bring a lawsuit against the company in April 2026.

What Exactly Does the New York Moratorium Do?

Governor Hochul has been facing pressure from residents and legislators over data centers for the past several months. But while the New York legislature passed an omnibus bill, the Responsible Data Center Development Act, in June 2026, the governor is still reviewing it and has not yet put her signature on it.

While the executive order that Governor Hochul signed will put a one-year pause on all state environmental reviews for data center facilities over 50 megawatts, it is less aggressive than the omnibus. Still, activists applauded Governor Hochul’s order as a step forward.

In addition to the one-year ban on data centers, the executive order tasks New York’s Department of Public Service with assessing the energy and environmental impact of data centers. With this information, the department can create a generic environmental impact statement that will help set standards for data centers.

Around 13 other states have introduced moratoriums on data centers in their respective legislatures in 2026, so hopefully, more states will soon follow in New York’s footsteps.  

(feature image: Wikimedia Commons/Tedder)

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