New York to impose the country’s first state-wide moratorium on data centres

Summary

Subscribed with another email? Logout and Login with that one. Account subscription benefits alongside Premium Stories, Editorials, Opinions and more. Unlock these with Subscription Published - July 14, 2026 04:43 pm IST - New York Governor Kathy Hochul set to sign the country’s first state-wide moratorium on hyperscale data centres. File | Photo Credit: AP New York will block the construction of any new large data centres for up to a year so the state can create rules to protect the environment and energy grid from the power-hungry facilities that fuel artificial intelligence technology. Governor Kathy Hochul is set to sign an executive order Tuesday (July 14, 2026) morning imposing the country's first state-wide moratorium on hyperscale data centres, which house thousands of computer servers and require massive amounts of energy and a steady supply of water to keep cool. "As data centre 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,” Ms. Tech companies and other backers have argued moves to block the construction of data centres hurt job growth for local communities and cede ground to China in a race to lead in the rapidly growing AI industry. Hochul's office described the legislation as complex and said it needed additional work. Instead, the Governor is opting for an executive order that would take effect immediately once signed.