“Data center development threatens to increase water and electricity bills, use up our natural resources, and create uncertainty for New Yorkers,” Gov. Kathy Hochul defended.
Published 07/14/2026, 22:54.
Updated 07/14/2026 22:56
Reading time: 1 min.
New York State Governor Kathy Hochul on February 10, 2026 in New York (USA). (SPENCER PLATT/GETTY IMAGES NORTH AMERICA/AFP)
For the first time in an American state. New York will stop issuing permits for the construction of new large data centers with a capacity of at least 50 megawatts for a year. This moratorium, signed Tuesday, July 14, by Gov. Kathy Hochul, is effective immediately. This should give the government time to better control this sector, which is thriving thanks to the development of artificial intelligence (AI).
American political leaders, while generally supportive of the technology sector and the investments it generates, are coming under pressure from voters to move away from building such infrastructure close to home. Dozens of cities and counties have imposed local restrictions. The moratorium passed in April in Maine before it was blocked by Gov. Janet Mills on the grounds that it would have prevented the construction of a “data center” in a town affected by the plant closure.
“As data center development threatens to increase water and electricity bills, deplete our natural resources, and create uncertainty for New Yorkers, it is my responsibility to act and lead the way.”– justified Katie Hochul in a press release.
Spending on data center construction in the United States has skyrocketed in recent years, with tens of billions of dollars invested in the infrastructure. Critics of “data centers” point to their high energy consumption, massive use of water for cooling, the noise pollution they create and the relatively limited number of jobs they create. Their supporters, on the contrary, argue that blocking their development harms employment and leaves China free to fight over artificial intelligence.
Data center emissions reached 286 million tons of CO2 in 2025, according to a study by credit insurance company Allianz Trade published at the end of June. By 2030 they could grow to 643 million tons. According to this study, almost 70% of global emissions are concentrated in the United States and China.