The cryptocurrency and artificial intelligence sector is facing a new challenge: regulators are beginning to actively limit energy consumption. On July 14, New York Governor Kathy Hochul signed an executive order introducing an unprecedented state-level moratorium on the construction of large data centers. This is the first such case in U.S. history.
The order prohibits the issuance of new environmental permits for data centers with a capacity exceeding 50 MW for a period of up to one year. The goal is to give authorities time to assess the impact of these facilities on the power grid, water resources, and the environment as a whole. Notably, the threshold was raised from 20 MW to avoid affecting small data centers, such as those serving hospitals. Concurrently, state legislators are advancing a stricter initiative awaiting the governor's signature.
In addition to the moratorium, Hochul has instructed relevant agencies to develop a mechanism requiring data center operators to invest in the state's energy infrastructure. Furthermore, data centers with a load of 5 MW or more must obtain at least 30% of their electricity from renewable sources by 2030, 66% by 2035, and 90% by 2040. This is a serious blow to the business model of many mining and AI companies, which traditionally rely on cheap, often non-renewable energy.
Initially, legislators proposed a three-year moratorium, but after negotiations with stakeholders, the period was reduced to one year. However, this is only part of the plan: the governor has already stated her intention to seek the repeal of sales tax exemptions for large data centers in the next session. The lobbying group Data Center Coalition (DCC) is strongly opposed, claiming the moratorium "will undermine New York's economy and send a signal that the state is closed for business." Ken Pokalski, vice president of the New York State Business Council, called the requirements "excessive and unviable."
This is not an isolated case. In April 2026, the Maine State Legislature passed a similar 18-month law, but the governor vetoed it. According to the "U.S. Data Center Construction Moratorium Tracker," as of June 6, there were 127 active moratoriums—more than double the 58 in April. The trend is clear: regulators across the country are beginning to tighten the screws.
Cryptalist Analysis: This is a signal for the entire market. New York, as a financial hub, is setting a trend. If the moratorium survives legal challenges and is extended, we will see a wave of similar restrictions in other states. For miners and AI infrastructure operators, this means an urgent need to revise their strategy: either transition to renewable energy or migrate to jurisdictions with more favorable regulations, such as Texas or Wyoming. But even there, as we recall, environmental controls are tightening.