Data Center Moratorium

A data center moratorium is a governmental or regional policy that temporarily halts or restricts the construction and operation of new data centers, typically implemented to address concerns about energy consumption, water usage, or grid capacity. These policies matter for AI governance because the explosive growth in AI infrastructure requires massive data center expansion, and moratoria can create compliance bottlenecks that force enterprises to navigate complex permitting processes or relocate operations. For organizations deploying large-scale AI models, understanding and adapting to data center restrictions is critical for resource planning, operational continuity, and managing the intersection of AI development with environmental and infrastructure regulations.

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EnforcementUS2026-07-22

New York's One-Year Data Center Moratorium Freezes AI Infrastructure Plans and Triggers Procurement and Siting Compliance Reviews

New York Governor Kathy Hochul announced a one-year moratorium on construction of data centers consuming 50 megawatts or more of power, making New York the first US state to impose such a restriction. The moratorium is paired with a directive to develop a Generic Environmental Impact Statement to set consistent development standards and a plan to repeal sales tax exemptions previously used to attract data center investment. Projects already in New York's grid queue face immediate suspension pending the outcome of the new regulatory process.

data center moratorium AI infrastructure regulation environmental impact New York US state policy energy regulation procurement risk infrastructure siting