New York State Governor Kathy Hochul signed an executive order (Executive Order) on July 14, 2026, imposing a first-of-its-kind statewide moratorium on the issuance of discretionary permits by the NYS Department of Environmental Conservation (DEC) for data centers with a peak load of 50 MW or more (Data Centers). The moratorium is effective immediately and will remain in effect until a Generic Environmental Impact Statement (GEIS) providing a set of “consistent standards” is completed by the NYS Department of Public Service (DPS) for new Data Center development.
The Executive Order requires the DPS to prepare a GEIS under the State Environmental Quality Review Act (SEQRA) to assess the potential environmental impacts associated with the construction and operation of Data Centers. The DPS is directed to consider energy demand, water use and quality, air quality, disproportionate impacts on disadvantaged communities, and noise levels.
The Executive Order prohibits the DEC from issuing discretionary permits for the construction or expansion of Data Centers for which applications have been submitted to the DEC but not yet determined to be complete. The moratorium does not affect local government approvals.
Other key requirements in the Executive Order include:
- Community Investment Framework. Empire State Development is directed to create a Community Investment Framework within 60 days, which provides guidance associated with an energy affordability fund, local energy infrastructure investments, involvement of organized labor, and transparent reporting on economic metrics associated with Data Center development. The Executive Order contemplates industrial development agencies using this framework to negotiate terms with developers and operators of Data Centers.
- New York Grid Acceleration Fund. The DPS is to consider the development of a mechanism to limit rate impacts on all customers, including the possibility of requiring Data Centers to make upfront contributions to finance grid improvements.
- Interconnection, Reliability, and Cost Allocation. The DPS is to form a Data Center Interconnection Working Group to identify and resolve interconnection concerns associated with Data Centers.
- Water Withdrawal. The DEC is directed to consider whether regulatory or policy changes or guidance is required to respond to and reflect the water demands of large-use customers, including Data Centers, and provide a corresponding report within a year.
Unlike Senate Bill S10642, which the NYS legislature passed last month, the Executive Order does not require that Data Centers bring their own generation, issuance by the DEC of a comprehensive environmental impact report, or creation by the DPS of a new service classification for Data Centers.
If you have any questions regarding the content of this alert, please contact Kevin McAuliffe or Matt Moses, Project Development Practice Area co-chairs and Data Center & Digital Infrastructure Team co-leaders, at kmcauliffe@barclaydamon.com and mmoses@barclaydamon.com; Lauryn Fulton, associate, at lfulton@barclaydamon.com; or another member of the firm’s Project Development, Energy, or Regulatory Practice Areas or Data Center & Digital Infrastructure Team.