New York is the First State to Place a Moratorium on New AI Data Centers
By Manhattan Real Estate Tracker, July 15, 2026
Governor Kathy Hochul signed the country’s first moratorium on new hyperscale data centers today, along with the strongest regulations for data center development and a plan to support local communities. The governor is temporarily suspending state environmental permits for a maximum of one year in order to establish a nation-leading regulatory framework that protects ratepayers, the environment, the energy system, and communities throughout the state.
According to Coresite, they presently operate three data centers in the NYC metro area, with two in Secaucus, New Jersey, and the other one in Manhattan at 32 Avenue of the Americas.
“As data center 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,” said New York Governor Kathy Hochul. Hochul also said that she would pursue legislation to repeal sales tax exemptions for large data centers.
The construction moratorium will apply to data centers that use 50 megawatts or more of power according to the governor’s office. The state’s Department of Environmental Conservation will not issue any discretionary permits not already deemed complete during the moratorium, the governor’s office said.
