CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, AUGUST 4, 2026

New York Enacts First-in-the-Nation Statewide Data Center Moratorium

Data centers

The moratorium is intended to halt activities while the state government develops a comprehensive legal framework for data center development.

August 3, 2026
Joshua L. Sturtevant - Sheppard

As of May 2026, nearly 12 gigawatts of data center load requests were in the New York Independent System Operator interconnection queue, with more than two-thirds of capacity requests entering the queue in 2025 alone. On July 14, 2026, in response to concerns over this rapid growth, Governor Kathy Hochul issued Executive Order No. 62 (the “Order”) imposing a temporary moratorium on data centers in New York State. Among the concerns cited in the Order are the cost burden on ratepayers associated with transmission upgrades required to accommodate large loads, potential environmental impacts, and large-scale water use.

The moratorium is intended to halt activities while the state government develops a comprehensive legal framework for data center development. While dozens of municipal and county-level moratoriums are in place throughout the U.S., and while the legislatures of several states, including Maine, have proposed moratoriums, the Order is the first statewide moratorium to be enacted nationally.

Mr. Sturtevant may be contacted at jsturtevant@sheppard.com


Use the form below to search the CDJ Archives: Search by topic, name, keywords, etc...

CDJ ARCHIVES-NEWS YOU MIGHT HAVE MISSED