New York Legislature Passes Nation's First Statewide Data Center Moratorium (S.10642); Hochul Decision Pending

In early June 2026 the New York State Legislature passed the Responsible Data Center Development Act (S.10642), imposing a one-year statewide moratorium on new permits for hyperscale data centers over 20 megawatts and requiring environmental impact assessments, new electricity and water rate classes, and labor protections. Sponsored by Senator Kristen Gonzalez, the bill cleared both chambers as the session closed. Governor Kathy Hochul has not committed to signing it, saying she wants to address the status quo while reviewing the moratorium specifics. If signed, it would be the first statewide data center moratorium in the nation; the load-bearing concern is energy load and ratepayer cost exposure on an already-strained grid.

This is the highest-altitude version of the data-center backlash — a full statewide pause rather than a tax clawback — and it tracks alongside the Arizona/Illinois moratoriums and the 300-plus bills filed nationally (2026-06-22–arizona-illinois-data-center-tax-moratoriums-300-bills-nationally). The fight is the same cost-shift dynamic named in the fiscal-capture event (2026-06-11–data-center-fiscal-capture-tax-exemptions-state-budgets-electoral-salience) and signaled by the record PJM capacity auction (2025-11-01–pjm-capacity-auction-record-data-center-40-percent-costs). Hochul’s signing decision — moratorium versus economic-development agenda, with hyperscalers lobbying directly — is the pivot to watch.