New York Pauses State Permits for Large Data Centers
New York has temporarily paused certain state permits for large data centers while officials develop rules for electricity demand, water use, environmental impacts and community costs.
Gov. Kathy Hochul signed Executive Order 62 on July 14, 2026. The order applies statewide to facilities or groups of facilities that consume or can consume at least 50 megawatts and meet the state’s definition of a data center.
What the order covers
The order defines covered data centers as facilities used to house computer servers or related computing and telecommunications equipment for storing, processing, distributing or managing data. Facilities primarily used for manufacturing, research, education or medical care are excluded.
The immediate pause applies to certain discretionary state permits, approvals, licenses or similar permissions under the Department of Environmental Conservation. DEC must hold covered applications in abeyance when they were pending or may later be filed but had not been determined complete before the order took effect. DEC may also ask applicants to identify whether a permit involves a covered data center before deciding that an application is complete.
That distinction matters. The order does not cancel every data-center project, stop all construction or create a blanket statewide ban. Local-government permits, approvals and zoning are expressly outside the state permit pause. A project’s status depends on its size, primary use, permit history and local approvals.
Why state officials acted
The order directs the Department of Public Service to begin a formal environmental review examining energy demand, water use and quality, air quality, effects on disadvantaged communities and noise. The review will produce a Generic Environmental Impact Statement and findings statement.
State officials say the review is needed because large computing facilities can require substantial electricity and water. The executive order also cites risks that utility customers could face if grid infrastructure is built for projects that are delayed, reduced or canceled. The state’s stated goal is to prevent those costs from being shifted broadly to other New Yorkers.
The Empire State Development announcement describes the process as potentially lasting up to a year. The order itself ties the pause to completion of the final environmental review, so the exact duration is not guaranteed.
What communities and utilities should watch
Empire State Development has 60 days from July 14 to create a Community Investment Framework for local governments and other public entities negotiating with data-center developers. The framework is expected to address infrastructure, public services, labor standards, local hiring, workforce development and transparency.
The order also tells DPS to consider a New York Grid Acceleration Fund, including possible upfront developer contributions, support for grid improvements, clean-energy or storage investments and protections against stranded costs. Those ideas are not adopted rules. DPS must still develop and consider the details.
DPS is directed to form a data-center interconnection working group within 60 days, while transmission owners must report to the Public Service Commission within 90 days on how they study system impacts and estimate costs. DEC must also assess whether additional rules or guidance are needed for water withdrawals and report within 12 months.
The Associated Press reported that the pause has drawn opposition from the data-center industry, which warned that delayed investment and jobs could move elsewhere. The dispute now centers on who should pay for new grid capacity and community infrastructure, and how New York can pursue technology development without leaving residents with higher utility, environmental or public-service costs.
The next major milestones are the DPS environmental-review process, ESD’s community-benefit framework and proposed approaches to interconnection and cost allocation.
Sources
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