# New York Pauses Hyperscale Data Center Permits

On October 6, 2026, Governor Kathy Hochul announced a New York State moratorium of up to one year on new discretionary state environmental permits for hyperscale data-center construction while the state develops safeguards for communities, utility customers, water resources, and the electric grid. The pause may affect proposed projects, including development in East Fishkill. New York also cited an emerging Empire State Development community investment framework, proposed changes to data-center sales-tax exemptions, and AI-related registration requirements beginning in November 2026, followed by compliance and reporting obligations beginning in January 2027. No solicitation, contract award, or contract value was announced.

- Developers and contractors should assess whether planned projects depend on discretionary state environmental permits and account for potential delays in project schedules and bid assumptions.
- Future rules may require developers to provide their own energy or pay a premium for grid access, contribute to grid improvements, and negotiate community benefits; these are potential conditions under development, not established requirements in the signals.
- Companies involved in covered AI activities should note the stated November 2026 registration start and January 2027 compliance and reporting start, and incorporate those dates into planning.

**Jurisdictions:** sled
**Industries:** Information Technology, Energy & Utilities, Construction & Infrastructure
**Topics:** Digital Infrastructure, Regulatory Compliance
**Published:** October 07, 2026

### Government Entities
- New York State (NYS)
- Empire State Development (ESD)
- New York State Office of Innovation, Governance, Integrity and Trust (DIGIT)

### Key Quotes
> I enacted a nation-leading data center moratorium to protect our communities and hold developers accountable because I believe New Yorkers deserve a say in the decisions that affect their future.
> — Kathy Hochul, Governor of New York

> New York is responding the right way — with Governor Hochul’s nation-leading moratorium, which is critical to giving the state time to understand the risks involved and, above all, protect ratepayers from higher bills and our natural resources from depletion.
> — Michelle Hinchey, New York State Senator

### Sources
- [Governor Hochul and Representatives Ocasio-Cortez and Ryan Highlight New York’s Nation-Leading Moratorium on Hyperscale Data Center Construction | Governor Kathy Hochul | New York State](https://www.governor.ny.gov/news/governor-hochul-and-representatives-ocasio-cortez-and-ryan-highlight-new-yorks-nation-leading) - NY
- [La Gobernadora Hochul y los Representantes Ocasio-Cortez y Ryan Destacan la Moratoria de Nueva York —Pionera a Nivel Nacional— Sobre la Construcción de Centros de Datos de Hiperescala | Governor Kathy Hochul | New York State](https://www.governor.ny.gov/news/la-gobernadora-hochul-y-los-representantes-ocasio-cortez-y-ryan-destacan-la-moratoria-de-nueva) - NY
- [B-roll, Video, Audio, Photos & Rush Transcript: Governor Hochul and Representatives Ocasio-Cortez and Ryan Highlight New York’s Nation-Leading Moratorium on Hyperscale Data Center Construction | Governor Kathy Hochul | New York State](https://www.governor.ny.gov/news/b-roll-video-audio-photos-rush-transcript-governor-hochul-and-representatives-ocasio-cortez) - NY