NY Data Center Moratorium is Irrelevant to the Data Center Power Problem

On July 14, 2026, Governor Kathy Hochul signed an executive order effectively imposing a 12-month moratorium on the interconnection to the electric grid in New York State of data centers that can consume 50 megawatts of energy or more.  This represents the first state-wide moratorium on the development of new hyperscale data centers in the United States.

Whether you think Governor Hochul’s executive order is wise or foolish probably depends on your political perspective. But one thing should be clear to everyone knowledgeable in the science and industry of electric power: the executive order is irrelevant.

The US electric grid has a major problem: Given the way the grid is currently structured, both legally and technologically, there are not enough electrons available to power the growing need of data centers for electricity and the growing demand of retail consumers for affordable power.

But the problem does not end there. The average cost of electricity for US industrial users is approximately 50% higher than what industrial users pay for electricity in China.  As advanced technologies, robotics, and physical AI come increasingly to dominate the manufacturing sector, US manufacturers cannot hope to compete globally while burdened by such a large structural disadvantage.

The huge capital investments being made in data center power infrastructure offer a once-in-a-generation opportunity to reform the US electricity grid and get its policies and technologies right. The United States cannot afford to miss this opportunity.  Those involved in the science and industry of electric power must just ignore the politics of data centers and get to work on the solutions.