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New York State Department of Financial Services

07/22/2026 | Press release | Distributed by Public on 07/22/2026 10:03

On Long Island, Governor Hochul Highlights First Statewide Moratorium on New Hyperscale Data Centers as Support Continues to Grow

Since taking office, Governor Hochul has ensured New York is leading the nation in AI innovation and development. As part of her FY25 Budget, the Governor launched Empire AI, a nation-leading initiative to advance AI research for public good. This year, she launched the FutureWorks Commission to advise on policy and private sector actions to protect the security of workers while harnessing the economic benefits of AI for all New Yorkers. This blue ribbon Commission is composed of nation-leading experts, workers' advocates, and business leaders, and will be charged with advising Governor Hochul on how to navigate the AI transition, so that the benefits of AI can be shared among New York's families, workers, and small businesses - not just large corporations.

Governor Hochul also implemented nation-leading safeguards to keep New Yorkers safe online and to ensure safe and responsible AI use in New York State. Initiatives include:

  • The SAFE for Kids Act and Child Data Protection Act that restrict addictive feeds for kids and prevent online operators from collecting and monetizing children's data without informed consent.
  • AI Companion legislation which set first-in-the-nation safeguards, diverting user conversations about self-harm to mental health resources and interrupting unhealthy addictive behaviors. The Governor also outlawed AI-Generated Child Sexual Abuse Material.
  • The recently signed Warning Labels bill that will require social media companies post warnings about the platform's potential impact on mental health.
  • AI Deceptive Practices Act, which enhances protections against unauthorized use of likeness/voice and the unauthorized dissemination of intimate images.

This year, the Governor's Safe by Design Act was enacted in the FY27 State Budget. Safe by Design ensures that parental controls for kids are set at the highest protections on common social and gaming platforms, which means that non-connections above the age of 18 cannot privately communicate with kids, view their full profile, or tag them in content. Location settings will also be turned off by default, and children under 13 must receive parental approval for new connections. It also disables certain AI chatbot features on online platforms for kids and parents must be able to set limits on children's financial transactions on online gaming platforms and view their child's transaction history. While many of these platforms have increased their security features for kids, in New York it is now the law, and cannot be relaxed by these platforms over time.

Additionally, Governor Hochul is creating a first-of-its kind Office of Digital Innovation, Governance, Integrity, and Trust (DIGIT). DIGIT will serve as a central, authoritative body for digital safety and technological governance, devising new approaches and ensuring consistent enforcement to keep New Yorkers safe online while protecting New York's position as a state that values and invests in cutting-edge innovation. The DIGIT Office will first focus on regulating large frontier AI developers as outlined in the RAISE Act, enabling greater transparency into their safety measures and establishing a reporting mechanism for developers to report critical safety incidents. The effective date of the law is January 1, 2027.

State Senator Monica Martinez said, "Artificial intelligence and data centers run on the same limited natural resources we all depend on for daily life. Allowing these energy- and water-intensive facilities to remain unchecked drives up costs for residents and threatens quality of life across New York, especially here on Long Island. I thank Governor Hochul for instituting this one-year pause on new data center development while New York determines how best to prepare for and integrate these technologies to meet the needs of our state."

Assemblymember Kwani B. O'Pharrow said, "Artificial intelligence and emerging technologies present tremendous opportunities for New York, but innovation must never come at the expense of our communities, our environment, or working families. I support Governor Hochul's decision to establish a temporary moratorium while New York develops a responsible, transparent and nation leading regulatory framework."

Assemblymember Steve Stern said, "As the Representative for the 10th Assembly District, I thank Governor Hochul for joining us in Suffolk County today, and for her proactive leadership in addressing the critical challenges data centers pose for our communities and for taking the steps necessary to ensure that before any centers are built, there is a full understanding of their implications. By bringing key stakeholders and professionals together, we can address the impact of these centers on the grid, our sole-source aquifer, and workforce, and address future costs to ratepayers and the infrastructure demands posed by data centers. Thank you to Governor Hochul for her recognizing the importance of local control and regional concerns while addressing the needs of all New Yorkers."

Town of Babylon Supervisor Rich Schaffer said, "I want to thank Governor Hochul for taking a thoughtful, balanced approach to the future of large-scale data centers in New York. By pausing new projects while the State conducts a comprehensive review, the Governor is ensuring that we get this right before decisions are made that could have lasting impacts on our communities, our electric grid, and our environment. I also appreciate Governor Hochul bringing elected officials, stakeholders, and community leaders to the table. Long Island has a unique perspective and this collaborative process will help develop a framework that supports economic opportunity while protecting our residents, natural resources, and infrastructure for generations to come."

Town of Brookhaven Councilmember Jonathan Kornreich said, "I commend Governor Hochul for taking a serious and responsible approach to hyperscale data centers. Her Executive Order wisely recognizes that these facilities raise major questions about energy demand, water use, water quality, air quality, ratepayer protection, and community impacts. I especially appreciate that the State is looking at whether data centers should pay more for their energy or supply their own, and that the Governor is considering a Grid Acceleration Fund so massive private users help invest in the grid instead of leaving ordinary New Yorkers to absorb those costs. In the Town of Brookhaven, we have been asking many of these same questions through our own recently passed moratorium. On Long Island, where we rely on a sole-source aquifer and a constrained regional electric grid, we need to establish clear rules before projects of this scale move forward. We were also concerned that a Brookhaven-only moratorium could simply push development pressure into neighboring towns, even though the aquifer and the electric grid are regional resources shared by all of us. I thank Governor Hochul for being a strong partner in government and for recognizing that local communities should not have to face these issues alone. Her Executive Order gives towns like Brookhaven the time and support needed to plan responsibly, while also helping protect Long Island as a region."

AARP New York State Director Beth Finkel said, "At a time when too many New Yorkers are struggling to afford basic necessities, they should not be forced to pay for the enormous energy demands of massive data centers. Nearly half of older New Yorkers have cut back on basic expenses such as groceries, personal care, and transportation because of high utility bills, while 17 percent have reduced spending on medical expenses, including prescription medications. AARP New York welcomes Governor Hochul's Executive Order 62 for putting consumer protection and affordability at the center of New York's energy policy."

New York State Department of Financial Services published this content on July 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 22, 2026 at 16:03 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]