Gov. Kathy Hochul is banning large data-center construction for up to a year, making New York the latest state to confront the rollout of sites powering the artificial-intelligence boom.

The governor, a Democrat, was set to sign an executive order Tuesday halting construction of big, new data centers, her office said. The moratorium would give the state time to create regulations for data centers that can help the environment and energy grid.

No other state has enacted a similar freeze. Maine Gov. Janet Mills, a Democrat, vetoed a bill earlier this year that would have halted construction of new data centers. The legislature voted against an exemption she wanted for a project in one town. Dozens of cities and counties across the U.S. have issued temporary halts on data-center construction. Many states have proposed similar bans.

Communities have lashed out at data centers springing up across the country, fueling an anti-AI movement. They say the facilities, which house the equipment powering AI and computing systems, could overwhelm the local power supply and hike utility bills. Some voters have attempted to remove politicians who supported data-center development.

New York's temporary ban applies to construction of large data centers with capacities of at least 50 megawatts. The ban wouldn't extend to hospitals, universities and other facilities that have smaller data centers, Hochul's office said. Data centers tend to be in areas with open land and power connectivity.

The governor's freeze will last as long as it takes to create data-center regulations but no more than a year, her office said. She has ordered state officials to analyze how communities can financially benefit from data centers. The freeze would halt any projects still awaiting a permit, the governor's office said.

"New York will lead the way in creating the strongest standards in the nation for data center development," Hochul said.

Hochul, who is running for re-election in November, has enacted a series of policies in the past year that could appeal to her base. She initiated a tax on luxury second homes and signed an AI safety bill into law.

Her office said she wants to work with the state legislature to eliminate sales-tax subsidies for data centers.

Write to Alyssa Lukpat at alyssa.lukpat@wsj.com

(END) Dow Jones Newswires

July 14, 2026 05:00 ET (09:00 GMT)

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