Kathy Hochul Signs First Statewide Moratorium on Data Centers

New York Gov. Kathy Hochul is implementing the country’s first statewide moratorium on the construction of new, large-scale data centers, she announced Tuesday.

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Hochul, a Democrat running for reelection this year, said the temporary, one-year freeze was necessary while state lawmakers draft regulations to protect energy resources. Data centers have stored computer systems in physical buildings for decades, but the growth of artificial intelligence has led to the rampant construction of controversial facilities that require large amounts of electricity and water for their cooling systems.

“We want AI companies to invest here, grow their businesses, and do well,” Hochul said in a video posted to X on Tuesday. “But when you benefit from the talent and energy of New York, we expect you to protect our resources and give back to our communities. This is a critical moment, and New York is going to take the time to get it right.”

There are at least 133 data centers in New York, according to Data Center Map, an industry database. Virginia and Texas have the most data centers in the country with about 637 and 504, respectively.

Forty-six percent of respondents to a state conducted in June said a one-year moratorium on new permits for large data centers was good for New York communities.

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