NY state pauses new large data center projects in US first
An aerial view of a 49.5 megawatt three-level data center under construction on July 8, 2026 in Vernon, California. (Getty Images)
New York has become the first U.S. state to halt construction of new large-scale data centers, with the governor signing an executive order pausing permits for up to one year.
The moratorium, which takes effect immediately, applies to facilities with capacities of at least 50 megawatts, enough electricity to power tens of thousands of homes, and will give the state time to develop regulation for the rapidly expanding sector, fired by growing demand for artificial intelligence.
Critics of data centers point to their high electricity consumption, which can strain local grids and inflate energy bills, as well as their heavy water use, noise generation and the relatively small number of jobs they create.
